Total bankruptcies in 2024 rose 14% year-over-year, but experts put the data into perspective.

According to data provided by Epiq AACER, total bankruptcy filings last year came in at 508,758. That’s up from 445,286 registered in 2023.

While representing a substantial year-over-year increase, experts pointed out that total bankruptcy filings remain lower than the pre-pandemic total of 757,816 recorded in 2019.

“As anticipated, we saw a steady increase in bankruptcy filings throughout 2024 and expect that growth trend to continue throughout 2025,” Epiq AACER vice president Michael Hunter said in a news release. “If the current trend continues, new bankruptcy filings will return to pre-pandemic normalized volumes over the next 24-30 months.

“Modest rises in household debt and elevated delinquency rates reveal the stress households are experiencing and are reflected in the steady increased bankruptcy filing trends,” Hunter continued.

Epiq AACER reported overall consumer filing totals for 2024 climbed to 478,749, representing a 14% increase from the 419,555 consumer filings during the previous year.

Consumer Chapter 7 filings jumped 19% to 288,968 from the previous year’s total of 242,919.

The 188,934 consumer Chapter 13 bankruptcy filings amounted to a 7% increase over last year’s total of 175,977.

Commercial Chapter 11 filings increased 20% in 2024 to 7,879 from 6,583.

Experts added overall commercial filings for 2024 climbed 17% to 30,009 from the 25,731 registered the previous year.

“The continued increase in bankruptcies over the past year reflects the growing list of economic challenges faced by consumers and businesses,” American Bankruptcy Institute executive director Amy Quackenboss said in the news release.

“Rising interest rates, inflation, increasing geopolitical tensions and shifts in post-pandemic consumer spending have more struggling businesses and families turning to bankruptcy for a financial fresh start from their growing debt loads,” Quackenboss added.

Looking at just December data, Epiq AACER reported total bankruptcy filings came in at 38,121, marking an 11% increase from the December 2023 total of 34,486.

Experts said the consumer bankruptcy filing total of 35,793 also represented an 11% increase from the 32,391 consumer filings in December of last year.

Consumer Chapter 7 filings totaled 21,918 in December, up 17% year-over-year from the 18,718 Chapter 7 filings last December.

Epiq AACER also mentioned consumer Chapter 13 cases only ticked up 1% to 13,804 in December. There were 13,629 of those filings during the same month last year.

ABI has partnered with Epiq AACER to provide the most current bankruptcy filing data for analysts, researchers, and members of the news media.

Learn more at https://bankruptcy.epiqglobal.com/analytics.