Whether you look at the data on a sequential or year-over-year basis, consumer bankruptcies increased in July.

According to data provided by Epiq AACER, total bankruptcy filings for July came in at 54,718, representing a 10% increase from a year ago.

There were 51,925 individual bankruptcy filings in July, marking an 11% annual increase.

Looking closer at the individual July cases, Epiq AACER reported 32,651 Chapter 7 filings — a 12% year-over-year increase and 4% sequential rise — and 19,152 Chapter 13 filings — a 10% lift year over year and 7% climb from the previous month.

“July’s filings increase reflects the cumulative impact of elevated interest rates, higher target inflation, and record household debt levels that near $18.8 trillion,” Epiq AACER vice president Michael Hunter said in a news release. “These numbers capture the ongoing stress from tighter credit conditions and softer consumer demand that have built over the past two years.”

Meanwhile, Epiq AACER reported overall commercial filings in July came in at 2,793, decreasing by 8% from a year ago.

There were 666 commercial Chapter 11 filings, a 27% decrease from last July. Epiq AACER pointed out that last year’s total included more than 300 filings from a large healthcare system’s bankruptcy.

“Bankruptcy serves as a critical safeguard, helping households and businesses reorganize their finances, preserve value, and move forward during periods of financial distress,”, at the American Bankruptcy Institute (ABI) executive director Amy Quackenboss said in the news release.

“ABI appreciates the continued efforts of Congress to permanently expand access for both distressed small businesses looking to restructure under Subchapter V and for consumers looking to file under Chapter 13,” Quackenboss added.

ABI and Epiq AACER recapped that legislation introduced by Sen. Chuck Grassley, an Iowa Republican, recently passed the U.S. Senate to permanently increase the debt eligibility limit to $7.5 million for small businesses looking to restructure under the streamlined process of Subchapter V of Chapter 11.

The legislation would also raise the debt limit for individual Chapter 13 filings to $2.75 million and remove the distinction between secured and unsecured debt for that calculation.

The bill now goes to the U.S. House of Representatives, where companion legislation was previously introduced by Rep. Ben Cline of West Virginia and was reported favorably for full House consideration.

ABI has partnered with Epiq Bankruptcy to provide the most current bankruptcy filing data for analysts, researchers, and members of the news media.