Business Bankruptcy Filings: 25 in Jan 2021
The bankruptcy filings moved to 25 in Jan 2021, up 2.13 from 22 in Jan 2020.
Bankruptcy Filings - Historical Chart
Business Bankruptcy Filings in the United States. Gray shaded areas indicate U.S. recessions.
Source: Federal Reserve Bank of St. Louis (FRED), Series DDDI06USA156NWDB. Shaded areas = NBER recession dates. Updated 2026-03-10.
What the Jan 2021 Data Shows
At 25, the bankruptcy filings in Jan 2021 is above the 10-year average of 7 by 17.98. The reading has been mixed recently, fluctuating without a clear directional trend over the past 6 months.
Business bankruptcy filings track petitions filed by business entities in U.S. Bankruptcy Courts. The data includes Chapter 7 (liquidation), Chapter 11 (reorganization), and Chapter 13 filings by businesses. It does not include personal consumer bankruptcies unless filed by sole proprietors.
Filings dropped sharply during the pandemic due to government relief programs (PPP, EIDL, eviction moratoriums) and lender forbearance. As these supports expired, filings began climbing. The current trajectory reflects accumulated stress from higher interest rates, expiring pandemic relief, and tightening credit conditions.
Note: this FRED series may have limited recent data. The U.S. Courts Administrative Office publishes more current filing statistics, but FRED availability depends on data provider updates.
What This Metric Measures
This page tracks the number of business bankruptcy petitions filed in U.S. federal courts, including Chapter 7 (liquidation), Chapter 11 (reorganization), and Chapter 13 filings by business entities. The data comes from the Federal Reserve Bank of St. Louis FRED database, series DDDI06USA156NWDB, updated annual.
Historical Context
The all-time peak was 25 in Jan 2021. The all-time trough was 3 in Jan 2008. During COVID-19 in 2020, the reading hit 22 (Jan 2020).
Why It Matters
For business owners considering their options, the bankruptcy count provides context. If filings are surging, it means many other businesses are in the same position. Bankruptcy courts get congested, legal fees increase, and creditors become less willing to negotiate outside of court because they are dealing with more distressed borrowers simultaneously. A rising bankruptcy trend makes early action on debt restructuring more valuable because you can negotiate before the system is overwhelmed.
What This Means for Business Owners
Understanding where this metric stands relative to historical norms helps business owners make better borrowing decisions. Metrics far from their 10-year average often signal turning points that affect the cost and availability of credit.
Business Bankruptcy Filings - Frequently Asked Questions
The latest available FRED data shows 24.60 business bankruptcy filings for Jan 2021. For more current numbers, check the U.S. Courts Administrative Office quarterly reports, which may be more up to date.
Chapter 7 is liquidation: the business shuts down and assets are sold to pay creditors. Chapter 11 is reorganization: the business continues operating while restructuring debts under court supervision. Small businesses increasingly use Subchapter V of Chapter 11, created in 2020 for streamlined small business reorganization.
PPP loans, EIDL grants, eviction and foreclosure moratoriums, and broad lender forbearance kept distressed businesses alive. Many businesses that would have filed in 2020-2021 were able to delay. Some recovered; others filed later as relief expired.
Business filings have been climbing from pandemic-era lows as interest rates rose, PPP/EIDL reserves depleted, and banks tightened lending. Chapter 11 filings in particular have been rising among mid-sized businesses with rate-sensitive debt.
Informal workouts with creditors, debt settlement through negotiated agreements, Assignment for Benefit of Creditors (ABC), receivership, or state-level dissolution. Bankruptcy should be a last resort after exhausting these options, especially for small businesses where legal costs can consume available assets.
FRED series DDDI06USA156NWDB. The underlying data is from U.S. Bankruptcy Courts as compiled by the Administrative Office of the U.S. Courts. Note that FRED data availability may lag the primary source.
Related Data & Guides
Data sourced from the Federal Reserve Economic Data (FRED) maintained by the Federal Reserve Bank of St. Louis. Updated monthly when new data is released.