4 January 2024
Bankruptcy filings in the U.S. saw an 18% surge in 2023, driven by higher interest rates, stricter lending standards, and the fading of pandemic-era financial supports. The total filings, which include both commercial and personal bankruptcies, rose to 445,186 from 378,390 the previous year, as reported by Epiq AACER. Notably, commercial Chapter 11 reorganizations jumped by 72%, while consumer filings also increased by 18%. Despite the uptick, the numbers are still below the pre-pandemic levels, with 757,816 cases recorded in 2019. Projections for 2024 indicate that bankruptcy filings are expected to continue their upward trajectory.