Business Bankruptcies Surge in First Half of 2026: What Suppliers Need to Know

Epiq AACER and the American Bankruptcy Institute reported on July 8, 2026 that U.S. commercial bankruptcy filings rose 13% in the first half of the year, with small business Subchapter V filings up 50%.

Why it matters: Business failures just hit a post-pandemic high, so review credit limits and confirm coverage on your riskiest accounts now.

The midyear numbers all point one direction

Two separate midyear reports released this week tell the same story: more businesses are failing, at every size.

• Commercial filings reached 17,285 in the first six months of 2026, a 13% increase over the 15,340 recorded in the same period last year.
• Commercial Chapter 11 filings jumped 28% to 4,589, up from 3,595 in the first half of 2025, according to Epiq AACER.
• BankruptcyData’s 2026 Midyear Restructuring Review counted 7,080 business bankruptcy filings in the first half, a 17.5% increase and the highest first-half total since the pandemic.

Small businesses are cracking fastest

Subchapter V, the streamlined reorganization path for small businesses, is flashing the brightest warning light.

• Small businesses made 1,663 Subchapter V elections in the first half of 2026, a 50% jump from 1,107 a year earlier, a trend we flagged when small business bankruptcies started surging earlier this year.
• Epiq AACER Vice President Michael Hunter attributed the surge to higher borrowing costs and softening demand.
• First-quarter Subchapter V filings ran 67% ahead of 2025, so the pressure has been building all year.

Large debtors are filing too

The surge is not limited to small companies, and trade creditors absorb the shock each time a large debtor files.

• DISH DBS Corporation and its subsidiaries filed prepackaged Chapter 11 cases on June 30 to restructure roughly $10 billion in debt.
• TPx Communications parent U.S. TelePacific Corp. filed Chapter 11 on June 28, listing $1 billion to $10 billion in debt against $100 million to $500 million in assets.
• Each filing leaves uninsured suppliers waiting in the unsecured creditor line for goods and services they already delivered, while insured suppliers hold a claim path, as the First Brands bankruptcy demonstrated.

What to do now

A rising filing count is a portfolio problem, not a headline, and suppliers who act before a customer files keep the most recovery options open.

1. Pull an accounts receivable aging report and flag every customer stretching payments beyond terms.
2. Review credit limits on your most concentrated accounts and reduce exposure where the risk has grown.
3. Confirm the notification deadlines in your trade credit insurance policy; claims are paid subject to credit limits, notification requirements, and policy terms in place at the time of the filing.
4. Contact Securitas Global Risk Solutions to review your customer portfolio with a specialist.

Disclaimer:
This blog post is meant to be informative and provide helpful tips and insights into credit insurance policies. It is not meant to supersede any policy requirements. Please consult your credit insurance policy for all requirements including claim filing deadlines and required documentation.

Since 2004, Securitas Global Risk Solutions, LLC has helped clients develop trade credit and political risk transfer solutions. As an independent brokerage, Securitas is focused on developing comprehensive solutions that meet client needs, ensuring a complete understanding of policy wording and delivering excellent responsive service. If you want to understand how trade credit insurance can protect your business, contact Securitas Global Risk Solutions to speak with a specialist.