Small business filings, captured as subchapter V elections within Chapter 11, increased 91% in February 2026 to 314, up from 164 the previous year, according to data provided by Epiq AACER, a provider of U.S. bankruptcy filing data. Commercial Chapter 11 bankruptcy filings increased 67% in February 2026, with the 814 filings increasing from the 487 filings in February 2025. February’s commercial Chapter 11 total reflected a large number of related filings tied to a few sizeable commercial Chapter 11 proceedings. Total February commercial filings increased 21% to 2,666 from the 2,200 commercial filings in February 2025.
“The significant increases in Subchapter V elections reflects the reality that many small businesses are operating in a challenging environment with higher borrowing costs, softening consumer demand and tighter lending standards,” Michael Hunter, vice president of Epiq AACER, said. “At the same time, households are managing rising credit card and auto delinquencies, increasing foreclosure starts and higher mortgage delinquency rates — particularly within the FHA/GNMA segment. Layer in ongoing geopolitical uncertainty, return of pre-pandemic normalized filer volumes, and the expiration of Covid era forbearance plans and stimulus, it’s clear why both small‑business restructurings and individual filings continue to move higher compared to last year.”
Total bankruptcy filings were 45,891 in February 2026, a 14% increase from the February 2025 total of 40,304. Individual bankruptcy filings increased 13% in February to 43,225, up from the February 2025 individual filing total of 38,104. There were 26,677 individual chapter 7 filings in February 2026, a 17% increase over the 22,891 filings recorded in February 2025. Individual chapter 13 filings in February 2026 were 16,437, a 9% increase from the 15,132 filings last February.
“Subchapter V filings have grown for eight consecutive months amid inflation, high interest rates, tightening credit and geopolitical headwinds,” Amy Quackenboss, executive director of the American Bankruptcy Institute, said. “The streamlined process of subchapter V provides struggling small businesses with the opportunity to restructure and preserve jobs in a challenging economy.”
Even with one fewer business day and storm‑related shutdowns in the Northeast, many February bankruptcy categories still equaled or exceeded January’s totals. The large number of subchapter V elections within Chapter 11 represented a 23% increase over January’s 255 filings. Conversely, overall commercial filings decreased 7% from the previous month’s total of 2,856, and total Chapter 11s dropped 15% from January’s 957 total, which had been due in large part to more related-case Chapter 11 filings in January. Total bankruptcies registered a small increase of 0.2% when compared to the January 2025 filing total of 45,815, and individual bankruptcies increased 1% from the 42,959 filings the previous month. Individual chapter 7 filings increased 3% from January’s total of 25,803, while chapter 13 filings fell 4% from the 17,045 filings recorded the previous month.
