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Bankruptcy Filings Way Up in May; Government Says They May Be Headed Much, Much Higher 

Bankruptcy filings went by 23.6 percent last month compared to last May. The Government officially estimates that filings could double from pre-pandemic lows before the end of the calendar year 2025.

The rapid rise in bankruptcy filings occurred under all chapters – including chapter 7 liquidation, chapter 13 consumer repayment plans, and chapter 11 business and financial reorganizations. Chapter 11s exploded last month by 113 percent. Chapter 13s continued to experience the biggest increase in consumer filings by climbing more than a quarter (26 percent) over May 2022. Chapter 7s filings, which continued to drop until the middle of last year, went up last month by a robust 20.2 percent.  

AIS Insight is a proprietary report created by AIS using data derived solely from information obtained from the Federal Bankruptcy Court System and the latest in bankruptcy analytical tools.