Subchapter V Elections Surge in Recent Years
News related to:Epiq · 2 min read
NEW YORK, Oct. 08, 2026 /CourierPR/ -- The number of Subchapter V elections within Chapter 11 filings during the first nine months of 2026 increased by 46% compared to the same period in 2025, according to data provided by Epiq AACER, the leading provider of US bankruptcy filing data. The 2026 figure was 469,719, a 46% rise from the 2025 figure of 322,467.
In the same period, the total number of bankruptcy filings increased by 11% from 423,168 in 2025 to 469,719 in 2026. Individual bankruptcy filings saw a 7% increase from 399,379 in 2025 to 444,252 in 2026. Specifically, individual Chapter 7 filings rose by 13% from 249,130 in 2025 to 282,413 in 2026, while individual Chapter 13 filings increased by 8% from 149,347 in 2025 to 160,817 in 2026.
Epiq AACER attributed the increase in bankruptcy filings to higher borrowing costs, rising household expenses, growing consumer delinquencies, and a softer job market. The organization noted that more small businesses are turning to Subchapter V to reorganize, and they expect filing volumes to continue climbing into 2027.
Commercial filing activity also saw a notable increase. In the first nine months of 2026, there were 25,467 overall commercial filings, a 7% increase from 23,789 in the same period in 2025. Commercial Chapter 11 filings increased by 11% from 5,895 in 2025 to 6,560 in 2026.
To address the challenges faced by small businesses, the bipartisan Bankruptcy Threshold Adjustment Act (H.R. 7730), sponsored by Rep. Ben Cline (R-Va.), was recently passed by the Senate on September 28. The legislation would permanently increase the eligibility limits for both Subchapter V and Chapter 13 bankruptcy, expanding access for struggling businesses and families seeking relief. The legislation would raise the Subchapter V debt eligibility limit to $7.5 million and the Chapter 13 debt limit to $2.75 million, eliminating the distinction between secured and unsecured debt for eligibility purposes.
In September 2026, the number of Subchapter V elections increased by 38% from 200 in September 2025 to 276. The total number of filings increased by 6% from 49,216 in September 2025 to 52,299 in September 2026. Commercial filings decreased by 7% from 2823 in September 2025 to 2627 in September 2026. Specifically, commercial Chapter 11 filings decreased by 16% from 769 in September 2025 to 648 in September 2026. This decrease was attributed to the filing of a long-term care pharmacy services provider, which included 109 related filings in the September 2025 total.
Individual filings increased by 7% from 46,393 in September 2025 to 49,672 in September 2026. Individual Chapter 7 filings increased by 9% from 28,763 in September 2025 to 31,250 in September 2026. Individual Chapter 13 filings increased by 4% from 17,534 in September 2025 to 18,320 in September 2026.
Epiq AACER partners with the American Bankruptcy Institute (ABI) to provide the most current bankruptcy filing data for analysts, researchers, and members of the news media. The ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes nearly 10,000 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists, and other bankruptcy professionals, providing a forum for the exchange of ideas and information.