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, up from 1,107 filings in the first half of 2025, the American Bankruptcy Institute (ABI) said in a July 8 statement.
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