U.S. Bankruptcy Filings Rose 11% in a Year to 469,719, Epiq Says

Filings are climbing across the board

Total bankruptcy filings in the United States rose 11% over the past year to 469,719 for the twelve months ending September 30, according to data from Epiq AACER reported by the American Bankruptcy Institute. Filings reached new highs for both consumer and commercial cases since last September, with Chapter 7 cases leading the growth.

Individual filings rose to 444,252 from 403,390 a year ago. Chapter 7 filings, the liquidation route most common for households, increased 13% to 282,413 from 249,130, while Chapter 13 filings rose 8% to 160,817 from 149,347. September alone saw 52,299 total filings, up 6%.

Small businesses are leaning on Chapter 11

On the commercial side, 25,467 businesses filed, up 7% from 23,831, and commercial Chapter 11 cases jumped 11% to 6,560 from 5,919. The sharpest move was in Subchapter V small business cases, up 46% to 2,442 from 1,672.

"What we are seeing consistently is individuals and businesses turning to bankruptcy at higher volumes, driven by higher borrowing costs, ongoing household expenses, delinquencies, and softer job market numbers," said Epiq vice president Michael Hunter. "We expect these numbers to continue to climb into 2027 as the pressure from these factors materialize."

A credit cycle signal

Rising filings with a softening job market is the classic late-cycle recipe, and the composition matters: the fastest growth is in the smallest, most rate-sensitive borrowers. Consumer stress is no longer confined to subprime corners if Chapter 7 volumes keep accelerating at 13% a year.

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How this could hit the options market

Bankruptcy data is a credit-quality tell, and traders map it onto consumer lenders and credit-card networks first. Watch flow in COF, SYF, V and MA around monthly charge-off prints, and in regional banks via KRE for small-business exposure, since Subchapter V cases up 46% point squarely at Main Street borrowers. If filings keep climbing into 2027 as Epiq expects, put flow in consumer credit tends to build ahead of the earnings warnings.

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