US bankruptcy filings rise 11% in first nine months of 2026

Source published 1h 21m agoTerminal published 1h 19m ago

Summary

In the first nine months of 2026, U.S. bankruptcy filings surged by 11 percent, totaling 469,719 cases, according to the American Bankruptcy Institute (ABI). This increase was largely driven by individual filings, which reached 444,252, alongside a rise in commercial bankruptcies, particularly among small businesses, which saw a 46 percent uptick in Chapter 11 Subchapter V filings. The rise in bankruptcies reflects ongoing economic challenges such as elevated borrowing costs and inflationary pressures that have persisted since the outbreak of the U.S.-Iran war in February 2026. Additionally, the recent passage of the Bankruptcy Threshold Adjustment Act aims to expand access to bankruptcy relief for struggling businesses and individuals, highlighting the urgent need for financial support amid a fluctuating economic landscape.

Analysis

Matt Osborn: Matt Osborn is a principal at Cornerstone Research, a consulting firm specializing in economic and financial analysis. He contributes to reports on corporate distress and bankruptcy patterns. In the news, he addressed the pace of large company bankruptcies and cited high interest rates and regulatory uncertainty as key drivers. Joelle Scally: Joelle Scally is an economic policy adviser at the New York Federal Reserve. She monitors and reports on consumer credit and delinquency trends. In the news, she provided context on elevated levels of new delinquencies for credit cards and auto loans as of an August statement. Michael Hunter: Michael Hunter serves as vice president at Epiq AACER, a provider of bankruptcy data and services. He analyzes trends in consumer and commercial filings. In the news, he commented on the factors driving the rise in bankruptcies, including higher borrowing costs and consumer delinquencies. Amy Quackenboss: Amy Quackenboss is the executive director of the American Bankruptcy Institute. She oversees the organization's research and policy commentary on bankruptcy matters. In the news, she discussed challenges facing debtors and highlighted recent congressional legislation to expand bankruptcy access. Chris Williamson: Chris Williamson is chief business economist at S&P Global Market Intelligence. He analyzes business surveys and economic activity indicators. In the news, he noted accelerating growth in U.S. business activity, particularly in manufacturing and services during September. American Bankruptcy Institute: The American Bankruptcy Institute is a non-profit organization focused on research, education, and professional development related to bankruptcy law and practice. It compiles and releases periodic statistics and analysis on bankruptcy trends in the United States. In the news, the ABI issued an October statement reporting on the increase in filings during the first nine months of 2026 and commenting on underlying economic pressures. Economy: U.S. business activity has accelerated for several consecutive months, with manufacturing new orders reaching their highest levels in years. Inflation: Inflationary pressures have remained elevated since the U.S.-Iran war began in late February, staying above pre-conflict levels through the summer. Legislation: Congress has passed the Bankruptcy Threshold Adjustment Act, which aims to raise debt limits for small businesses under Subchapter V and for individuals under Chapter 13 to expand access to relief.

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Analysis

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