US bankruptcies surge 18% but remain below pre-pandemic levels

End of pandemic stimulus

Total bankruptcies in the US rose 18% in 2023, as higher interest rates, an increased cost of funds and the end of pandemic stimulus began to take their toll.

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. Comme...