(The Center Square) – Commercial bankruptcy filings increased 31 percent in May 2023 from May 2022, according to a report from a company that tracks bankruptcy filings.

There were 2,324 commercial filings in May 2023 compared to 1,771 registered in May 2022, according to Epiq Bankruptcy.

Total bankruptcy filings were 38,669 in May 2023, a 9 percent increase from April 2023 and a 23 percent increase from May 2022.

Commercial Chapter 11 filings had the biggest increase, according to Epiq's news release. Those type of bankruptcies increased from 332 in May 2022 to 680 in May 2023.

According to U.S. Courts, "A case filed under chapter 11 of the United States Bankruptcy Code is frequently referred to as a 'reorganization' bankruptcy. Usually, the debtor remains 'in possession,' has the powers and duties of a trustee, may continue to operate its business, and may, with court approval, borrow new money. A plan of reorganization is proposed, creditors whose rights are affected may vote on the plan, and the plan may be confirmed by the court if it gets the required votes and satisfies certain legal requirements."

Individual bankruptcy filings increased from 29,559 in May 2022 to 36,345 total filings in May 2023, a 23 percent increase.

“Rising interest rates, inflation, and elevated costs of borrowing can represent a daunting economic challenge to struggling families and businesses,” American Bankruptcy Institute Executive Director Amy Quackenboss said in a media release. “Amid these sustained economic pressures, bankruptcy provides financially distressed companies and households with access to a release valve.”