According to data from Epiq AACER, total bankruptcies hit 445,186, up from 378,390 in 2022, although this remains significantly below 2019’s figure of 757,816.

Vice president of Epiq AACER Michael Hunter noted the increased momentum of bankruptcies, with a “significant number of commercial filers leading the expected increase and normalisation back to pre-pandemic bankruptcy volumes”.

US inflation falls to 3.1% in November

Alongside rising rates and falling pandemic stimulus, Hunter cited “near historic levels of household debt” as a cause for the spiking bankruptcy rates.

Commercial Chapter 11 filings increased 72% to 6,569 in 2023, while overall commercial filings rose 19% to 25,627 and overall consumer filings rose 18% on 2022.

ABI executive director Amy Quackenboss said: “As interest rates remain elevated, increasing geopolitical tensions weigh on global supply chains and debt loads continue to grow, struggling businesses and families can turn to the proven process of bankruptcy for a financial fresh start.”

December reflected the experience of the annual rise, with total bankruptcies up 16% on December 2022’s figure, commercial Chapter 11 filings up 54%, overall commercial filings up 18% and overall consumer filings 16% higher than the same month last year.