The potential pool of customers who recently filed for bankruptcy and likely can’t get auto financing elsewhere continues to grow for buy-here, pay-here dealers.

According to data provided by Epiq AACER, total individual bankruptcy filings increased 10% in April to 47,323, up from the April 2024 individual filing total of 43,030.

Looking deeper at the data, Epiq found that the 30,961 individual Chapter 7 filings in April represented a 16% increase over the 26,781 filings recorded last April.

Analysts added the 16,246 individual Chapter 13 filings completed in April marked a slight increase from the 16,175 individual Chapter 13 filings posted last April.

“The 9 percent increase in total bankruptcy filings in April 2025, particularly the 16 percent surge in individual Chapter 7 filings, reflects the mounting financial strain on households, elevated prices, and higher borrowing costs,” Epiq AACER vice president Michael Hunter said in a news release. “While commercial filings have softened, the uptick in small business Subchapter V elections signals persistent distress among smaller businesses navigating an uncertain economic landscape.

“April 2025’s data underscores a continued rise in individual bankruptcies, with 47,323 filings driven by economic pressures like inflation and geopolitical uncertainties,” Hunter continued.

Total bankruptcy filings came in at 49,588 in April, according to Epiq, representing a 9% increase from April 2024.

Conversely, analysts found that total April commercial filings dipped 12% to 2,265.

Commercial Chapter 11 bankruptcy filings decreased 20% in April, declining to 434 from a year ago.

Small business filings, however, captured as subchapter V elections within Chapter 11, increased 4% to 218 from the 210 filings recorded in April 2024, according to Epiq.

“Although commercial Chapter 11 filings declined, the 4 percent growth in subchapter V filings highlights the ongoing challenges for small businesses seeking relief, pointing to a broader need for accessible restructuring options,” Hunter said.

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

“While filings still remain below pre-pandemic levels, elevated prices, higher borrowing costs and uncertain geopolitical events compound the economic challenges faced by families and businesses,” ABI executive director Amy Quackenboss said.

“We look forward to providing Congress with the research, information and statistics to re-establish higher debt thresholds for financially distressed small businesses and consumers to access the fresh start of bankruptcy,” Quackenboss went on to say.