While softening sequentially, bankruptcy filings rose notably in July.

According to data provided by Epiq Bankruptcy, total bankruptcy filings came in at 35,716 in July, representing a 15% increase from last July’s total of 30,862.

Epiq reported individual bankruptcy filings totaled 33,755 in July, registering a 16% jump above the July 2022 filing total of 29,241.

Experts indicated there were 19,476 Individual Chapter 7 filings in July, a 17% increase versus 16,645 in July of last year. And there were 14,229 individual Chapter 13 filings in July, a 13% increase above the 12,547 filings registered during the same month last year.

“More distressed consumers and businesses are turning to the financial lifeline of bankruptcy,” said American Bankruptcy Institute executive director Amy Quackenboss, who has partnered with Epiq Bankruptcy to provide the most current bankruptcy filing data for analysts, researchers, and members of the news media.

“While filings are still below levels seen prior to the pandemic, rising interest rates, inflationary pricing, and growing debt loads are contributing to an increase in households and businesses seeking a financial fresh start,” Quackenboss continued.

Business filings in July made an even more pronounced move higher year-over-year.

Epiq said there were 362 commercial Chapter 11 filings registered in July, an increase of 71% from the 212 filings registered last July.

Analysts found that overall commercial filings rose 21% to 1,961 in July, up from the 1,621 commercial filings registered in July of last year.

Epiq added that small business filings, captured as Subchapter V elections within Chapter 11, increased 61% to 153 in July, up from 95 in July 2022.

“The increase in commercial Chapter 11 filings in July is an indication of the challenges businesses continue to face in these dynamic times, however the data also suggests the economic recovery remains uneven and uncertain,” said Gregg Morin, vice president of business development and revenue at Epiq Bankruptcy.

“We remain committed to sharing the evolving financial landscape’s impact on new bankruptcy filings and supporting the market with bankruptcy data metrics,” Morin continued.

However, Epiq pointed out the July filing totals decreased when compared to the previous month.

Commercial Chapter 11 filings registered the largest drop from the previous month, as the July total decreased 38% from the June Chapter 11 filing total of 582.

July’s total bankruptcy filings represented a 6% decline when compared to the 37,782 total filings recorded in June.

And total individual filings for July marked a 5% drop from the June filing total of 35,636.