Are Chapter 11 filings increasing in 2026?
Yes. Business Chapter 11 filings hit 2,640 in the first quarter of 2026, up from 1,910 a year earlier, a 38 percent jump on U.S. Courts data.
The second quarter of 2026 ran 19 percent ahead of the same quarter in 2025, 2,382 filings against 1,997.
The climb started before this year. Filings reached 8,659 in 2025, up from 8,456 in 2024 and nearly double the 4,465 filed in 2022, on the courts' annual figures.
Filings were higher than a year earlier in each of the last four quarters. The count includes small-business cases. Filings bottomed out in 2021 and 2022 and are now back above the 2020 level. We expect business filings to stay steady or rise through 2026 and into 2027. We think restructuring is one of the few practices hiring at every level in 2026.
- 20207,786
- 20214,366
- 20224,465
- 20237,070
- 20248,456
- 20258,659
- Q1 2025
- Filings
- 1,910
- Same quarter a year earlier
- 2,021
- Change
- 5.5% lower
- Q2 2025
- Filings
- 1,997
- Same quarter a year earlier
- 2,462
- Change
- 18.9% lower
- Q3 2025
- Filings
- 2,509
- Same quarter a year earlier
- 1,984
- Change
- 26.5% higher
- Q4 2025
- Filings
- 2,227
- Same quarter a year earlier
- 1,968
- Change
- 13.2% higher
- Q1 2026
- Filings
- 2,640
- Same quarter a year earlier
- 1,910
- Change
- 38.2% higher
- Q2 2026
- Filings
- 2,382
- Same quarter a year earlier
- 1,997
- Change
- 19.3% higher
| Quarter | Filings | Same quarter a year earlier | Change |
|---|---|---|---|
| Q1 2025 | 1,910 | 2,021 | 5.5% lower |
| Q2 2025 | 1,997 | 2,462 | 18.9% lower |
| Q3 2025 | 2,509 | 1,984 | 26.5% higher |
| Q4 2025 | 2,227 | 1,968 | 13.2% higher |
| Q1 2026 | 2,640 | 1,910 | 38.2% higher |
| Q2 2026 | 2,382 | 1,997 | 19.3% higher |
What kind of restructuring work is growing?
We think out-of-court work is rising alongside the filings. Distressed companies that can avoid the cost and disclosure of a formal Chapter 11 go to liability-management deals and workouts first.
So groups are hiring two kinds of lawyers. Chapter 11 trial lawyers, and corporate restructuring lawyers who can close a complex workout without ever filing.
The skill set depends on the docket too. The lawyer who runs a distressed commercial real estate case isn't the one who runs a consumer retail bankruptcy. A firm staffing up today needs both. Which kind of case has your group staffed you on? I'd have that answer ready for a first interview.
Which restructuring lawyers are firms hiring?
Senior partners with an active distressed real estate or consumer-retail book. Mid-level associates are the hardest hires to fill. We think the lean filing years of 2021 and 2022 produced a smaller group of associates with Chapter 11 experience.
Have you run a Chapter 11 case yourself, and handled adversary proceedings? Hiring firms screen for both. I'd put both on the first page of your resume.
Why are restructuring partners leaving big firms?
In our conversations, conflicts are one reason. Some senior partners are moving their practices to mid-market and regional firms with cleaner conflict profiles.
Want one of those partners at your mid-market firm? I'd map your lender conflicts and resolve them first. Do you know where your lender conflicts are today?
Is restructuring a good practice area to move into in 2026?
Yes, if the group has work today. A group with an active docket and a real partner track is a good mid-level move right now. A group still staffing up against work that hasn't arrived is riskier. You can't always tell the two apart from the outside.
Before you accept, I would confirm the group has live matters today. Ask which matters are active right now. The conditions behind the 2025 and 2026 filing surge won't clear quickly. The firms that built their teams through 2024 are running the practices they planned. If a group can't name its live matters, keep looking.
Can the group you're talking to name its live matters?