Western PA business bankruptcy filings jump 58% in Q1, and more may be coming

More Pittsburgh-area businesses filed for bankruptcy during the first three months of 2024 than during any quarter last year.

It’s too soon to tell if a long-predicted increase is taking hold, but a measure undertaken nationally to help small businesses weather the pandemic is nearing an end and, if so, may open the door to increased filings across the country, particularly since companies are pressured by high interest rates that regulators are reluctant to cut.

There were 41 commercial bankruptcy filings in the Western District of Pennsylvania during the first quarter of 2024. Of those, 26 were Chapter 7, or liquidation, and 11 were Chapter 11, or restructuring. It compares with 26 during Q1 2023, marking an increase of almost 58%. Last year, no quarter topped 36 filings, according to data supplied by Epiq Bankruptcy and the American Bankruptcy Institute. In fact, 2023 set a record low of business bankruptcy filings in the region at 129.