US bankruptcies increased by 18% in 2023 and are seen rising again in 2024, according to bankruptcy data provider Epiq AACER.
Per new data published on Wednesday, total bankruptcy filings grew from 378,390 in 2022 to 445,186 in 2023.
However, total bankruptcy filings remained lower than the pre-pandemic total of 757,816 in 2019
Commercial Chapter 11 business reorganization filings increased 72% from 3,819 to 6,569.
Meanwhile, consumer filings totalled 419,559, up 18% from 356,911 in 2022.
"As anticipated, we saw new filings in 2023 increase momentum over 2022 with a significant number of commercial filers leading the expected increase and normalization back to pre-pandemic bankruptcy volumes," Epiq AACER vice president Michael Hunter said in a statement.
"We expect the increase in number of consumer and commercial filers seeking bankruptcy protection to continue in 2024 given the runoff of pandemic stimulus, increased cost of funds, higher interest rates, rising delinquency rates, and near historic levels of household debt."