January 2024 Bankruptcy Insights

A Look at the Rising Tide…

January 2024 Bankruptcy Insights: As we navigate through the early days of 2024, the landscape of bankruptcy filings in the USA presents a telling picture of the economic challenges and adjustments facing individuals and businesses alike. The January 2024 bankruptcy statistics offer a comprehensive overview of this trend, reflecting a significant uptick in filings across the board.

A Detailed Breakdown of January 2024 Filings

In January 2024, the United States witnessed a total of 36,607 bankruptcy filings, marking a 17% increase from January 2023’s total of 31,176. This rise extends a continuous 18-month streak of year-over-year increases in bankruptcy filings, encompassing both individual and commercial sectors.

Individual Filings on the Rise

Individual bankruptcy filings saw a significant jump, with 34,515 cases reported in January 2024, up 17% from 29,448 in the previous year. This includes:

  • 19,590 Chapter 7 filings, a notable 25% increase from January 2023.
  • 14,871 Chapter 13 filings, showing a steady 9% rise.

Commercial Filings Follow Suit

The commercial sector wasn’t immune to the upward trend either. January 2024 saw a 21% increase in commercial bankruptcy filings, with 2,092 cases reported, up from 1,728 in January 2023. Specifically, commercial Chapter 11 filings increased by 22% to 460 cases. Moreover, small business filings under subchapter V of Chapter 11 witnessed a remarkable 43% increase, reaching 176 filings.

Comparative Insights from December 2023

When compared to December 2023, both total and individual bankruptcy filings saw an increase, while commercial filings experienced a slight decrease. Total bankruptcies rose by 6%, and consumer bankruptcies edged up by 7%. However, commercial Chapter 11 filings saw a 10% decline from the previous month. Despite this, overall commercial filings and subchapter V elections within Chapter 11 displayed a marginal increase and decrease, respectively.

Looking Ahead: Trends and Expectations

The trajectory of bankruptcy filings into 2024 suggests a continuation of the current trend, especially with the looming conclusion of the spring tax season. Factors such as high interest rates, consumer price fatigue, and the depletion of pandemic-era savings are contributing to the increasing number of filings. Households and businesses are grappling with sustained high interest rates, persistent inflation, and stricter lending terms.

A crucial development on the horizon is the anticipated adjustment of the debt eligibility limit for businesses electing subchapter V reorganization under Chapter 11. Currently set at $7.5 million, it is expected to revert to $2,725,625 in late June 2024, potentially impacting future filings.


The January 2024 bankruptcy statistics underscore the ongoing economic challenges and shifts in the bankruptcy landscape. As individuals and businesses navigate through these turbulent times, understanding these trends is crucial for making informed decisions and preparing for what lies ahead. Whether seeking to reorganize debt, protect assets, or understand the broader economic indicators, these insights provide a valuable resource for navigating the complexities of bankruptcy.

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