Small Business Chapter 11 Filings Increase 50 Percent Year Over Year

Small Business Chapter 11 Filings Increase 50 Percent Year Over Year

Small business Chapter 11 bankruptcy filings jumped 50 percent in the first half of 2026 from the same period last year, signaling pressure on business owners. Chapter 11 is a type of bankruptcy filing that reorganizes a company’s debt to keep it afloat and allow the entity to become solvent. Subchapter V of Chapter 11 relates to small business filings. In the first half of this year, a total of 1,663 Subchapter V bankruptcy filings were made, u…