August bankruptcies across the board rose year-over-year, according to data provided by Epiq AACER and highlighted by the American Bankruptcy Institute (ABI), prompting experts to predict increased filings in the coming months.

Here is the latest case breakdown:

—52,007 total bankruptcy filings, an 8% increase from August 2025 (47,965)

—49,377 individual bankruptcy filings, a 9% increase from August 2025 (45,383)

—30,930 individual Chapter 7 filings, a 10% increase from August 2025 (28,049)

—18,335 individual Chapter 13 filings, a 10% increase from August 2025 (17,226)

—2,630 overall commercial filings, a 2% increase from August 2025 (2.582)

—623 commercial Chapter 11 filings, a 1% increase from August 2025 (618)

Experts homed in on Subchapter V elections within Chapter 11, which rose to 302 filings in August. That’s up 63% from the 185 filings recorded in August of last year.

“The August filing figures indicate that consumers and small businesses continue to navigate a challenging economic environment,” Epiq AACER vice president Michael Hunter said in a news release.

“The increase in Subchapter V elections reflects a growing preference for restructuring over liquidation as business owners seek practical solutions to manage debt and preserve value. As financial pressures persist, bankruptcy filings are likely to continue rising through 2026 and into 2027,” Hunter continued.

Looking at a sequential comparison revealed a different story despite an overall increase. Here is that breakdown of data versus July figures:

—Total filings increased 5% from July’s total of 54,744

—Individual filings increased 5% from July’s total of 51,929

—Individual Chapter 7 cases decreased 5% from July’s total of 32,655

—Individual Chapter 13 cases decreased 4% from July’s total of 19,155

—Commercial filings decreased 7% from July’s total of 2,815

—Commercial Chapter 11 filings decreased 8% from July’s total of 676

—Subchapter V elections increased 28% from July’s total of 236

“Persistent cost pressures, restrictive credit markets, and ongoing geopolitical uncertainty continue to create challenges for consumers and small businesses facing economic distress,” ABI executive director Amy Quackenboss said in the news release.

“Congressional efforts to permanently increase the eligibility limits for both Subchapter V and Chapter 13 would create greater access for struggling businesses and families to access the restructuring tools they need to regain financial stability,” Quackenboss added.

ABI recapped that legislation introduced by Sen. Chuck Grassley (R-Iowa) last month passed the 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.

ABI added the bill is currently before the House of Representatives, where companion legislation was previously introduced by Rep. Ben Cline (R-Va.) and was reported favorably for full House consideration earlier this year.

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