In the second quarter of 2025, overall Chapter 11 distress declined on both a quarterly and year-over-year basis, moving further below historical benchmark levels. Real estate distress also eased from the prior quarter and year earlier, while continuing to track well below long-term norms despite a modest increase in filing share. Health care services distress fell sharply from the prior quarter, though it remained significantly elevated relative to historical benchmarks even as the share of health care filings declined substantially.