Bankruptcy filings continue to increase from the reduced volumes experienced during the three years of the COVID-19 pandemic.

That’s the primary finding according to data provided by Epiq Bankruptcy, which said total bankruptcy filings in May spiked 23% year-over-year from 31,330 to 38,669.

Epiq reported individual bankruptcy filings totaled 36,345 in May, also registering a 23 percent increase from the May 2022 individual total of 29,559.

Officials said individual Chapter 13 filings increased 25 percent to 14,644 and individual Chapter 7 filings increased 22 percent to 21,625 from May 2022.

Meanwhile, Epiq noted that commercial Chapter 11 filings increased a whopping 105% in May to 680 versus the 332 filings in May of last year. Experts said nearly half of the Chapter 11 filings were made by corporate subsidiaries.

Overall commercial filings rose 31% in May to 2,324 versus the 1,771 registered in May. Small business filings, captured as subchapter V elections within Chapter 11, registered a 31% increase to 149 in May versus 114 filed in the same month a year ago.

“Rising interest rates, inflation, and elevated costs of borrowing can represent a daunting economic challenge to struggling families and businesses,” said Amy Quackenboss, who is executive director of the American Bankruptcy Institute, which collaborates with Epiq to share and explain the latest data and trends.

“Amid these sustained economic pressures, bankruptcy provides financially distressed companies and households with access to a release valve,” Quackenboss continued.

The latest Epiq data also showed total bankruptcy filings in May represented a 9% increase above the 35,485 total filings recorded the previous month. May’s commercial Chapter 11 filings increased 76% from the 387 filings in April.

“We have been diligently monitoring the ongoing trend of monthly new filings versus cases closed and it serves as another indicator for the direction of the bankruptcy market,” said Gregg Morin, vice president of business development and revenue for Epiq Bankruptcy. “After 35 consecutive months (April 2020 – February 2023) of more closed cases than new filings each month, the market had two consecutive months (March and April) of more new filings than closed cases.

“However, once again in May, 413 more cases closed than opened and year-to-date there are still 5,014 more closed cases than new filings,” Morin added.

To learn more, go to https://bankruptcy.epiqglobal.com/analytics.