SubChapter V elections within Chapter 11 increased to 302 filings in August 2026, up 63% from the 185 filings recorded in August 2025, according to data provided by Epiq AACER, a provider of U.S. bankruptcy filing data.
Key August 2026 data include:
- 52,007 total bankruptcy filings, an 8% increase from August 2025 (47,965).
- 49,377 individual bankruptcy filings, a 9% increase from August 2025 (45,383).
- 30,930 individual Chapter 7 filings, a 10% increase from August 2025 (28,049).
“The August filing figures indicate that consumers and small businesses continue to navigate a challenging economic environment,” Michael Hunter, vice president of Epiq AACER, said. “The increase in SubChapter V elections reflects a growing preference for restructuring over liquidation as business owners seek practical solutions to manage debt and preserve value. As financial pressures persist, bankruptcy filings are likely to continue rising through 2026 and into 2027.”
In August 2026, there were:
- 18,335 individual Chapter 13 filings, a 10% increase from August 2025 (17,226).
- 2,630 overall commercial filings, a 2% increase from August 2025 (2,582).
- 623 commercial Chapter 11 filings, a 1% increase from August 2025 (618).
“Persistent cost pressures, restrictive credit markets, and ongoing geopolitical uncertainty continue to create challenges for consumers and small businesses facing economic distress,” Amy Quackenboss, executive director of the American Bankruptcy Institute (ABI), said. “Congressional efforts to permanently increase the eligibility limits for both SubChapter V and Chapter 13 would create greater access for struggling businesses and families to access the restructuring tools they need to regain financial stability.”
Legislation introduced by Sen. Chuck Grassley (R-Iowa) last month passed the Senate to permanently increase the debt eligibility limit to US$7.5 million for small businesses looking to restructure under the streamlined process of SubChapter V of Chapter 11. The legislation would also raise the debt limit for individual Chapter 13 filings to $2.75 million and remove the distinction between secured and unsecured debt for that calculation. The bill is currently before the House of Representatives, where companion legislation was previously introduced by Rep. Ben Cline (R-Va.) and was reported favorably for full House consideration earlier this year.
Comparing August 2026 numbers to the previous month’s totals:
- SubChapter V elections increased 28% from July’s total of 236.
- Total filings increased 5% from July’s total of 54,744.
- Individual filings increased 5% from July’s total of 51,929.
- Individual Chapter 7s decreased 5% from July’s total of 32,655.
- Individual Chapter 13s decreased 4% from July’s total of 19,155.
- Commercial filings decreased 7% from July’s total of 2,815.
- Commercial Chapter 11 filings decreased 8% from July’s total of 676.
