A Midwestern franchised dealer who uses OnlineBKmanager.com shared this anecdote with president Robert Davies ahead of the latest data provided by Epiq AACER, which said total U.S. bankruptcy filings increased another 7% year-over-year in May.

“We’re seeing buyers come in just a day or two after filing,” the store sales manager, who has been using OnlineBKmanager.com since 2015, told Davies. “These aren’t ‘bad credit’ shoppers. They’re working families who hit a financial wall, often because of a medical situation or job loss.

“Once their bankruptcy is filed, many of them qualify for financing within their means. And they’re grateful for a dealer who treats them with dignity and arranges financing through a nationally respected lender who reports to all the credit bureaus.”

Whether it’s a special finance company that will book paper with consumers who have an open bankruptcy or buy-here, pay-here dealerships with their own related finance company to underwrite contacts as they see fit, these providers will have an opportunity to work with more bankrupt individuals.

According to Epiq AACER, the 48,218 total U.S. bankruptcy filings in May represented a 7% increase from last May’s total of 45,025.

Analysts said noncommercial bankruptcy filings also registered a 7% increase to 45,523 in May from noncommercial total of 42,361 compiled last May.

Epiq AACER noted that the number of consumers filing for Chapter 7 increased 11% to 28,716 in May from the 25,773 who filed for Chapter 7 last year, while Chapter 13 filings ticked up 1% to 16,694 in May from the 16,507 Chapter 13 filings in May of last year.

“Consumer filings continue to climb yet remain below pre-pandemic levels,” Epiq AACER vice president Michael Hunter said in a news release. “However, the resumption of student loan collections and the expiration of the FHA modification programs are likely to drive further increases in filings, particularly through the end of 2025 and into 2026.”

The bankruptcy trajectory is fueling activity at OnlineBKmanager.com, which offers a compliant and targeted way to connect with these consumers through a platform that can provide verified daily leads, including contact information, bankruptcy type, and filing date.

“Bankruptcy leads are at their highest levels in five years,” Davies said. “As more consumers voluntarily surrender vehicles purchased during the inflated pricing period of 2021 to 2023, there’s a growing demand for dealers to step in and help.

“If you wait for these buyers to find you, they may end up mistreated or pushed toward predatory alternatives to meet their automotive needs — unaware of a quality dealership nearby ready to assist,” he continued.

And individuals involved in a business that’s filed for bankruptcy might be potential dealership customers, too.

Epiq AACER reported commercial Chapter 11 filings totaled 733 in May, an increase of 62% over the 453 filings in April.

Analysts indicated the overall May commercial filing total of 2,695 represented an 8% increase from the April commercial filing total of 2,489.

“The sharp uptick in overall commercial Chapter 11 filings in May 2025 underscores the ongoing economic pressures businesses face, from elevated borrower costs, potential tariff impacts and geopolitical uncertainty,” Hunter said.

And American Bankruptcy Institute executive director Amy Quackenboss added through the news release, “The current financial landscape presents struggling businesses and consumers with additional challenges of elevated prices, higher borrowing costs and uncertain geopolitical events.

“Bankruptcy provides a proven process to a financial fresh start for distressed businesses and families,” Quackenboss went on to say.

And that fresh start might include the need for a new transportation solution.

“Contrary to outdated assumptions, bankruptcy filers are not financial pariahs,” Davies said. “In fact, many lenders specialize in bankruptcy auto loans and have billions of dollars in capital allocated specifically for this purpose. These lenders understand the bankruptcy window — often one to 10 days after filing a Chapter 7 — is one of the most opportune times to extend credit.

“As economic pressures persist and the hangover from pandemic-era pricing continues, the bankruptcy buyer segment is only expected to grow,” he continued. “Dealers who align themselves with lenders and platforms that specialize in this space will be well-positioned to capture consistent sales and build long-term customer relationships.

“In an industry where every sale counts, the message is clear: Bankruptcy is not a barrier — it’s a bridge. And for dealerships willing to cross it, the rewards are substantial,” Davies went on to say.