Bankruptcy Filings Are Still Rising in 2026. What That Means for Restructuring Practice

Bankruptcy filings are still rising.

According to U.S. Courts data published on April 23, 2026, bankruptcy filings increased 11.9% during the 12-month period ending March 31, 2026. Total filings rose to 591,850, compared with 529,080 for the year ending March 31, 2025.

Business filings also rose. U.S. Courts reported business filings increased from 23,309 to 25,960 over the same period, an 11.4% increase.

For law students, the lesson is not "restructuring is hot, pick it blindly." The lesson is that restructuring is countercyclical enough to deserve attention.

What restructuring lawyers do

Restructuring lawyers help companies, creditors, investors, lenders, boards, and buyers deal with financial distress.

That can mean:

• Chapter 11 cases
• Out-of-court workouts
• Liability-management transactions
• Distressed M&A
• DIP financing
• Creditor negotiations
• Bankruptcy litigation
• Plan confirmation
• Asset sales

The practice sits at the intersection of corporate law, finance, litigation, and bankruptcy procedure. That mix is why many students find it interesting once they understand it.

Why filing data matters

Bankruptcy filing data is not a perfect measure of BigLaw restructuring demand. Many filings are consumer cases, and not every business bankruptcy creates large-firm work.

But the direction still matters. Rising filings signal more financial stress. More stress tends to create more work for restructuring lawyers, especially when larger companies, lenders, sponsors, landlords, suppliers, or creditor groups are involved.

The U.S. Courts data also gives context. Filings have risen each quarter since the low point in June 2022, but they remain far below the historical highs after the 2007-2008 financial crisis.

That means the market can be active without being 2009.

Chapter 11 is the BigLaw center of gravity

The U.S. Courts April 2026 report shows Chapter 11 filings at 9,941 for the year ending March 31, 2026, compared with 8,844 for the year ending March 31, 2025.

Chapter 11 is where much of the large-company restructuring work happens. It is also where BigLaw teams often coordinate with investment bankers, financial advisors, claims agents, lenders, sponsors, and company management.

Junior associates may help with first-day motions, diligence, schedules, financing documents, hearing preparation, claims analysis, and sale process materials.

The deadlines can be intense because distressed companies often do not have time.

Why restructuring is different from M&A

M&A assumes a deal can be negotiated with parties who have time and options.

Restructuring often starts when time and options are running out.

That changes the feel of the work. You may have litigation risk, financing pressure, employee issues, vendor problems, creditor committees, and court hearings all happening at once. A restructuring lawyer needs to understand the documents and the leverage.

It is not purely transactional. It is not purely litigation. It is both.

What kind of student should look at restructuring

You might like restructuring if you enjoy:

• Finance
• Negotiation
• Fast-moving facts
• Court procedure
• Business problems
• Messy capital structures
• Strategy under pressure

You might dislike it if you want predictable hours, clean fact patterns, or work that stays in one lane.

How to research firms

Look beyond the generic firm ranking.

Ask:

• Does the firm usually represent debtors, creditors, sponsors, lenders, or buyers?
• Does the group handle company-side Chapter 11 work?
• Are juniors staffed on both transactional and litigation pieces?
• Is restructuring a core practice or a side practice?
• Which partners are actually doing the current matters?

Restructuring is one of those areas where group strength matters more than the firm's general brand.

Rising bankruptcy filings are a useful signal. The better question is which firms turn that market activity into real junior training.