U.S. small business bankruptcies rose in November as mom-and-pop shops faced “ongoing financial stress,” according to data from bankruptcy filing platform Epiq AACER.
Last month, small business filings under Chapter 11’s Subchapter V climbed to 223, marking a 23 percent increase from the 182 filings registered in November 2024.
Subchapter V, established in February 2020, streamlines Chapter 11 for small businesses, providing a faster, lower-cost path to restructuring.
Commercial Chapter 11 filings rose 20 percent year over year to 2,687, “signaling ongoing financial stress,” said Michael Hunter, vice president of Epiq AACER. Individual bankruptcies also jumped 8 percent from a year ago to 40,973.
Overall, bankruptcies climbed by 8 percent, totaling almost 44,000….