The number of U.S. businesses filing for Chapter 11 bankruptcies rose last month on an annual basis, continuing the trend of rising bankruptcies seen last year, according to the American Bankruptcy Institute (ABI).
“There were 539 commercial Chapter 11 filings recorded in January 2025, a 16 percent increase from the 465 commercial Chapter 11s in January 2024,” said a Feb. 4 statement from ABI citing bankruptcy data provider Epiq AACER.
A Chapter 11 bankruptcy involves the reorganization of a company’s assets and liabilities under court supervision. This type of bankruptcy process allows a company to remain in business while restructuring its finances.
Meanwhile, overall commercial bankruptcy filings increased 11 percent, with small business filings rising 7 percent….