For many small business owners, bankruptcy starts with a dream. They invest in a new location, hire employees or borrow money to grow, believing hard work and determination will lead to success. But as costs continue to rise and economic pressures mount, more businesses are finding that dream harder to sustain.
Bankruptcy filings in Massachusetts increased 8.5% during the 12-month period ending March 31, 2026, rising from 4,823 cases to 5,231, according to the latest data from the Administrative Office of the U.S. Courts. Business bankruptcy filings increased 24.2% during that same period.
Michael Deere, a bankruptcy attorney at Shatz, Schwartz and Fentin P.C., said he is seeing the impact firsthand, particularly among small business owners who took risks to build something of their own.
“Many new business owners are people who took a chance on themselves. They borrowed money, invested in their communities and worked hard to make their businesses succeed,” said Attorney Deere. “For some, the combination of higher costs, changing consumer habits and financial pressures has made it difficult to keep moving forward.”
While Massachusetts’ increase remained below the national growth rate of 11.9%, Attorney Deere said the trend highlights the challenges facing many entrepreneurs and families.
“Bankruptcy is often viewed as a failure, but it can also be a tool that gives people and businesses a way to address financial challenges and create a path forward,” he said.
The attorneys at Shatz, Schwartz and Fentin represent businesses and individuals in bankruptcy matters, including Chapter 7, Chapter 11 and Chapter 13 proceedings.