Multiple experts expect bankruptcy filings to continue to rise, especially after another upward drift in February.

According to data provided by Epiq AACER, total bankruptcy filings came in at 40,260 in February, marking a 3% increase year-over-year. Filings last February totaled 39,034.

Epiq AACER reported individual bankruptcy filings increased 5% in February to 38,108, up from the February 2024 individual filing total of 36,458.

Analysts said there were 22,899 individual Chapter 7 filings in February, an 8% rise year-over-year.

Conversely, Epiq AACER pointed out there were 15,128 individual Chapter 13 filings in February, a 1% dip from the 15,247 filings last February.

“The overall filing volume trend waned in February, primarily due to fewer filing days and a typical trend of filings after tax return season,” Epiq AACER vice president Michael Hunter said in a news release. “The availability and increased utilization of home equity has enabled homeowners to leverage that value to temporarily offset higher living costs.

“I expect a continued trend of increased filings through the spring and summer months primarily due to continued increases in living costs, debt accumulation, relatively flat household income growth, and influences related to regulatory change,” Hunter continued.

Looking at the business side of bankruptcy, Epiq AACER reported commercial Chapter 11 bankruptcy filings decreased 42% in February. But analysts pointed out that last February’s commercial Chapter 11 total was elevated by the related filings of two sizeable commercial Chapter 11 proceedings.

Additionally, Epiq AACER noted that there was one less business day in February compared to last year due to the leap year taking place in 2024.

Analysts added that total February commercial filings decreased 16% to 2,152 from the 2,576 commercial filings in February 2024.

“Inflation, elevated interest rates, tighter lending terms and geopolitical tensions are creating more challenges for distressed consumers and businesses looking to alleviate their growing debt loads,” American Bankruptcy Institute executive director Amy Quackenboss said. “Bankruptcy provides an established process for struggling households and businesses looking to access a financial fresh start.”

In a blog post on the law firm’s website, Weltman, Weinberg & Reis shareholder Scott Fink offered a similar reaction after seeing the latest bankruptcy information. ABI has partnered with Epiq Bankruptcy to provide the most current bankruptcy filing data for analysts, researchers and members of the news media.

“While many factors are potentially at play here, it is safe to assume the continued impacts of consumer price inflation, higher interest rates, and an increased reliance on credit has kept the filing rates for bankruptcy on the rise,” Fink wrote. “In fact, the latest data shows that nearly 7% of subprime auto borrowers were at least 60 days behind in payments and that the number of credit card borrowers only making the minimum payment rose to a 12-year high.

“All of this suggests the pace of bankruptcy filings will likely continue to increase as we move through 2025,” Fink added.