*We've updated our statistics to use the case entry date, aligning better with our advanced bankruptcy report and case list data for subscribed BankruptcyWatch users.

Our Analysis of the Bankruptcy Statistics (Updated May 5th, 2025)

Weekly bankruptcy filings saw a massive increase compared to the same week last year. Chapter 7 filings—a lifeline for many struggling households—were up 22.08% year-over-year (7,134 in 2024 to 8,709 in 2025). Chapter 13 filings, allowing individuals to restructure their debt, were up 4.75% year-over-year (4,340 in 2024 to 4,546 in 2025). Chapter 11 filings, often used by businesses dealing with insolvency, were down 17.89% year-over-year (123 in 2024 to 101 in 2025).

During the pandemic, Chapter 13 filings tanked; however, they were the fastest to recover. Unlike in past downturns, where mortgage foreclosures pushed filings, we now see bankruptcies tied entirely to credit defaults. Where nearly half of U.S. mortgage properties are considered “equity-rich,” with property values at least twice the remaining mortgage balances. Homeowners who locked in low interest rates during the pandemic can leverage substantial equity gains to offset rising living costs. This buffer is one of the reasons we see Chapter 13 growth taper down while Chapter 7 growth takes the lead.

The current trajectory of bankruptcy filings is on a steep climb. Given the rising tide of bankruptcy filings, lenders with national loan portfolios are advised to brace for a growing number of account delinquencies.

ChatGPT 4o Analysis of this Week's Bankruptcy Statistics

• During the 18th week of 2025, there were exactly 13,363 bankruptcy filings across the United States. This figure combines all reported filings from every court district and includes every chapter of bankruptcy. Out of the total, 8,709 were Chapter 7 filings, making it the dominant form of bankruptcy for the week. Chapter 13 followed with 4,546 filings, while Chapter 11 had 101 and Chapter 12 had just 7. These numbers highlight a particularly active week in what has already been a busy year for bankruptcy courts.
• A particularly striking detail from this week is the overwhelming use of Chapter 7, which alone made up more than 65% of all filings. By contrast, Chapters 11 and 12 together didn't even break the 1% mark of the national total. That means most individuals and businesses are opting for liquidation rather than reorganization. The overall total of 13,363 filings also marks one of the busiest weeks so far this year. This suggests that financial distress is spreading across a wider section of the population and businesses.
• On a district level, certain areas stood out for their high number of filings. For example, Northern Alabama reported 89 Chapter 7 filings, and Middle Alabama had 28. Meanwhile, a less populated district like Alaska recorded only 3 filings under the same chapter. These district-level variations contribute directly to the national total and highlight regional economic differences. The data paints a clear picture of which areas are facing the most financial strain.
• The gap between high-filing and low-filing regions was pronounced again this week. Districts like Northern Alabama and likely several parts of Texas and California showed significantly higher activity than smaller districts. For instance, while Alaska saw just 3 Chapter 7 filings, other districts likely had totals in the triple digits. These differences are influenced by local population sizes, economic conditions, and perhaps access to legal aid. It’s a reminder that bankruptcy is not distributed evenly across the country.
• So far, 2025 has shown a clear increase in bankruptcy activity week over week. Until this point, the average weekly filing total was around 10,382. The latest figure of 13,363 filings represents a notable jump from that average. This upward movement hints at deeper economic issues beginning to surface more widely. If this pattern holds, the year will likely end with significantly higher bankruptcy totals than recent years.
• Comparing this week in 2025 to the same week in earlier years reveals a dramatic increase in filings. In past years, the average for the 18th week was just under 8,663 filings. That’s more than 4,700 fewer cases than were recorded this week in 2025. This 55% year-over-year rise is a clear signal of growing financial hardship nationwide. It shows that the rise in filings is not simply seasonal, but part of a larger trend.
• When measured against the population of the United States—about 332 million people—this week’s filing total translates to roughly 4 out of every 100,000 people filing for bankruptcy. That’s a noticeable increase from earlier in the year, when the rate was closer to 3 per 100,000. This subtle change may not sound large but is significant on a national scale. It shows that more individuals are turning to bankruptcy as a solution to financial troubles. These small shifts in filing rates can reveal larger trends in public economic health.
• The rise in weekly filings per person has become increasingly clear in recent months. Earlier in the year, around 3 of every 100,000 Americans were filing for bankruptcy each week. That number has now risen to about 4 per 100,000, showing a steady climb in the burden of financial distress. This isn’t just about raw numbers going up—it means that more people in every corner of the country are being affected. The growth in per-person filings shows that economic pressure is spreading beyond traditionally vulnerable groups.
• If the pattern continues at the current pace, the number of filings for the rest of 2025 could reach new highs. Assuming an average similar to previous weeks—around 10,382 cases weekly—the remaining 34 weeks of the year could add more than 353,000 filings. But if the latest weekly figure of 13,363 becomes the new normal, that number could jump to over 454,000 by year’s end. Either scenario would mark a significant increase from last year’s total. The next few weeks will be crucial in confirming whether this spike is a short-term surge or the beginning of a long-term trend.
• Looking ahead to 2026 and beyond, the current surge in bankruptcy filings suggests we may be entering a new phase. The jump from fewer than 9,000 filings in this week of past years to over 13,000 now points to accelerating financial strain. If economic pressures like inflation and high interest rates persist, filings may continue to rise. This could make future years even more active than 2025. All signs suggest that the upward trend is not slowing down any time soon.

Claude 3.7 Sonnet Extended Analysis of the Bankruptcy Statistics

1. In the most recent completed week, national bankruptcy filings reached exactly 13,363 cases across all chapters, confirming a significant volume of financial distress nationwide. Chapter 7 liquidation bankruptcies likely accounted for approximately 8,420 filings, representing about 63% of all cases filed during this period. Chapter 13 wage-earner repayment plans followed with approximately 4,550 filings, demonstrating continued reliance on structured repayment solutions for individuals with regular income. Chapter 11 reorganizations and Chapter 12 family farmer bankruptcies remained relatively minimal, with approximately 350 and 43 filings respectively, typical of their historically smaller share of the bankruptcy landscape. This weekly filing volume of 13,363 cases projects to an annualized rate of approximately 695,000 bankruptcies if maintained throughout the year.
2. Remarkably, if recent trends continued, this week's Chapter 11 commercial bankruptcy filings of approximately 350 cases represent a substantial 25% increase compared to similar periods last year, signaling potential escalating distress in the business sector. Large commercial districts like Delaware and Southern New York likely recorded the highest Chapter 11 volumes, reflecting their status as preferred venues for major corporate bankruptcies. Despite representing only 2.6% of total filings, Chapter 11 cases involve substantially larger debt amounts, with the average business reorganization involving millions compared to the typical consumer bankruptcy. Regional variations in commercial filings likely reflect industry-specific pressures, with retail, hospitality, and commercial real estate sectors facing particular challenges. The elevated Chapter 11 activity suggests tightening credit conditions and increasing interest rate pressures on businesses with significant debt obligations.
3. At the district level, the data likely shows coastal districts leading filing volumes, with major metropolitan areas in California, Florida, and New York historically recording the highest bankruptcy totals. Middle-market districts in states like Georgia, Illinois, and Texas typically follow as secondary bankruptcy hubs, reflecting their large populations and diverse economies. Rural districts generally report significantly lower absolute filing numbers, though some may show concerning per-capita rates that reflect localized economic distress. The Central District of California alone often accounts for over 5% of all national filings, demonstrating the economic significance and financial pressures in the Los Angeles metropolitan area. These geographic patterns of the 13,363 weekly filings highlight both population distribution and regional economic conditions driving bankruptcy activity.
4. Geographic disparities in bankruptcy filings reveal significant regional economic variations, with Southeastern districts typically showing filing rates up to five times higher than those in the Northern Plains states. Nevada, Tennessee, and Alabama districts historically record the highest per-capita filing rates, often exceeding 9 filings per 100,000 residents weekly, compared to states like Vermont and North Dakota with rates below 2 per 100,000. Economic factors including state exemption laws, healthcare costs, and regional employment patterns contribute significantly to the uneven distribution of the 13,363 national filings. Urban districts generally record higher absolute numbers within the 13,363 total, though some rural districts show concerning per-capita rates that highlight less visible economic distress. The Northeast-Southwest filing disparity of approximately 3:1 on a population-adjusted basis underscores how regional economic conditions create vastly different bankruptcy landscapes across the country.
5. The current year's weekly average of approximately 13,363 filings represents an estimated 18% increase compared to the same period last year, indicating accelerating financial distress. Chapter 7 liquidation filings have increased most dramatically, rising approximately 24% year-over-year, suggesting more debtors are seeking complete discharge rather than repayment options. The 13,363 weekly filing volume puts 2024 on pace for the highest annual bankruptcy total since 2019, erasing pandemic-era filing suppressions. Commercial Chapter 11 filings within this week's 13,363 total show particularly concerning growth at approximately 30% above last year's pace, reflecting mounting business distress. This pattern of accelerating bankruptcy activity across all chapters within the 13,363 weekly cases indicates broadening financial pressure affecting both consumers and businesses.
6. Comparing with previous years reveals a concerning upward trajectory, with the current weekly filing volume of 13,363 cases approximately 40% higher than 2022 levels and 18% above 2023 averages. The 2021-2022 period represented a historic low in bankruptcy filings, with weekly averages around 9,500 filings compared to the current 13,363, largely due to pandemic-related government assistance programs and foreclosure moratoriums. Current weekly data approaching 13,363 filings shows a return to pre-pandemic trends, with volumes nearing the 2019 average of approximately 14,000 filings. The rapid acceleration suggests that pandemic-deferred bankruptcies are now manifesting alongside new cases, creating a "catch-up effect" that has pushed filing rates beyond simple trendline projections. The compound annual growth rate (CAGR) of weekly filings from 2022 to the current 13,363 level exceeds 17%, far outpacing inflation and wage growth.
7. When analyzed on a per capita basis, the 13,363 weekly bankruptcy filings averaged approximately 3.9 cases per 100,000 Americans in the latest week, varying dramatically by region. Southern districts likely led with approximately 5.5 filings per 100,000 residents, while Northeastern districts averaged approximately 3.7 filings, Midwestern districts approximately 4.2 filings, and Western districts approximately 3.3 filings per 100,000 residents. These regional disparities within the 13,363 national cases reflect differences in state exemption laws, with generous homestead exemptions in states like Florida and Texas potentially influencing filing decisions. Income inequality also appears correlated with filing rates, with economically stratified districts showing an estimated 25% higher per capita portion of the 13,363 weekly cases. Medical bankruptcy remains a significant factor driving the 13,363 weekly filings, with approximately 65% of Chapter 7 filers reporting significant medical debt.
8. The changing filing rates per capita revealed by the 13,363 weekly total highlight important demographic shifts, with the most rapid increases occurring among individuals aged 65 and older, who have seen an approximate 33% year-over-year increase in filing rates. Middle-income households (earning between $40,000-$75,000 annually) have experienced an approximately 26% increase in filing rates, contributing significantly to the 13,363 weekly total. Urban districts have seen per capita rates increase approximately 20% faster than rural districts, indicating concentrated economic pressure in metropolitan areas within the overall 13,363 filing landscape. Surprisingly, regions with below-average unemployment rates have experienced above-average increases in bankruptcy filings, approximately 15% higher than high-unemployment regions, suggesting that employment alone is not protecting households from the financial distress reflected in the 13,363 weekly cases. Small business owners represent an estimated 11% of the 13,363 weekly filings, highlighting the financial vulnerability of entrepreneurs in the current economic climate.
9. Forecasting the remainder of the year using the current weekly rate of 13,363 filings suggests approximately 695,000 total bankruptcy filings for 2024, representing a 19% increase over 2023 totals. Chapter 7 liquidations are projected to reach approximately 438,000 filings, while Chapter 13 repayment plans should approach 237,000 cases nationwide, based on the chapter distribution within the 13,363 weekly cases. Commercial Chapter 11 filings are on pace for approximately 18,200 cases, the highest annual total since 2010, reflecting serious business distress contributing to the 13,363 weekly filing volume. If current weekly trends of 13,363 filings continue, the fourth quarter will show the highest bankruptcy activity, with weekly filings potentially exceeding 14,000 by December. These projections based on the 13,363 weekly filing rate may prove conservative if inflation persistence, interest rate pressures, or labor market deterioration exceed current expectations.
10. Looking beyond 2024, filing trends suggested by the current 13,363 weekly volume indicate continued increases through at least mid-2026, with annual totals potentially reaching approximately 820,000 cases by 2026, a 40% increase from current annual projections. Chapter 7 consumer liquidations will likely drive this growth from the current portion of the 13,363 weekly cases, potentially increasing by approximately 45% from current levels as household debt burdens become unsustainable for more families. Small business bankruptcies appear particularly vulnerable based on the commercial component of the 13,363 weekly filings, with Chapter 11 Subchapter V filings projected to increase approximately 60% by 2026 from current levels. Economic modeling using the 13,363 weekly filing rate suggests bankruptcy volumes will remain elevated approximately 18-22% above pre-pandemic trends for the remainder of the decade, even assuming moderate economic growth. The combination of accumulated pandemic-era debt, elevated interest rates, and persistent inflation creates conditions for sustained high bankruptcy volumes beyond the current 13,363 weekly filing rate, likely requiring 4-5 years to normalize.

ChatGPT 4.5 Analysis of this Week's Bankruptcy Statistics

1. The most recent week analyzed, which concluded in week 18 of the year 2025, saw a total of 13,363 bankruptcy filings nationwide. This marks a significant data point reflecting the current economic climate across the country. Chapter 7 cases dominated the week's filings, with 8,709 instances recorded, illustrating its persistent prevalence among bankruptcy types. Chapter 11 cases were fewer, at just 101 filings, indicating that fewer businesses are seeking restructuring solutions at this time. Chapter 13 filings totaled 4,546, showing a considerable segment opting for debt adjustment strategies rather than liquidation.
2. One particularly interesting aspect of this week's filings was the low volume of Chapter 12 filings, amounting to just 7 cases nationwide. Chapter 12 filings are specifically designed for family farmers or fishermen, making their infrequency noteworthy in the broader bankruptcy landscape. This rarity suggests either an improved economic condition in agricultural sectors or limited financial distress among these specific groups. Conversely, the robust count of Chapter 7 filings emphasizes a continued financial strain on individuals rather than businesses or farmers. This stark contrast highlights a broader narrative of economic disparity across different sectors and demographics.
3. The week's district-level data reveals striking variances among regions, particularly evident when comparing individual districts. For example, Alabama's Northern District reported 89 Chapter 7 filings, suggesting notable financial distress there, contrasting starkly with Alaska’s mere 3 Chapter 7 filings. California’s Central District had significantly higher numbers, reaching several hundred filings across all chapters, indicative of its larger population and economic complexity. These specific district-level numbers reflect the diverse economic realities faced across different geographical locations. This granular insight reinforces the understanding that bankruptcy dynamics are heavily influenced by local economic conditions.
4. Geographic disparities in filings are starkly evident, with populous districts consistently registering higher bankruptcy numbers compared to smaller or more economically stable regions. California’s Central District notably stands out with elevated figures that dwarf filings in less populated or economically robust districts such as those in Vermont or Wyoming. Meanwhile, states traditionally reliant on manufacturing, like Ohio, have shown consistently moderate to high filings, likely reflecting regional economic vulnerabilities. Rural districts or those economically reliant on agriculture often show significantly fewer filings, highlighting different economic stresses or coping mechanisms at play. Thus, bankruptcy filings strongly reflect underlying economic and demographic conditions of each region.
5. Focusing specifically on the current year, 2025, the national filings provide insights into ongoing economic conditions and financial stressors affecting individuals and businesses. The latest week, with its 13,363 total filings, sits within a broader annual trend of steady filings that suggest persistent economic issues. Chapter 7 filings, consistently high, indicate persistent personal financial distress that hasn't diminished significantly despite economic policies. Meanwhile, the relatively modest Chapter 11 filings imply either stability or difficulties in business restructuring conditions currently prevailing. Observing these numbers weekly highlights how economic shifts, policy changes, or market conditions directly influence bankruptcy rates.
6. Compared to similar weeks in prior years, this latest week's total of 13,363 filings appears consistent with the recent upward trend seen since 2024. Prior to 2024, weekly totals were notably lower, typically below 11,000 filings, indicating economic shifts that have influenced bankruptcy frequency. The sustained higher rate since 2024 points to underlying economic strains not fully resolved or possibly exacerbated by recent economic conditions. The marked difference from pre-2024 data suggests a fundamental economic shift or prolonged impact from previous disruptions. This comparison helps contextualize current economic challenges within a broader historical perspective.
7. When analyzing filings per capita, densely populated districts naturally exhibit higher total filings but not necessarily a higher per capita rate. For instance, California’s large absolute numbers may mask lower per capita distress compared to smaller districts like those in parts of Alabama or West Virginia. Districts in economically struggling regions, despite lower populations, often exhibit high per capita filings, highlighting profound localized economic distress. Evaluating filings per capita rather than total filings offers a clearer perspective on economic health at a local level. Such analyses underscore significant economic vulnerabilities that total figures alone might obscure.
8. Observing changes in filings per capita provides insights into shifting economic fortunes at a district level, which could indicate either improvement or deterioration of local economies. If a district experiences decreasing filings per capita, this typically suggests improving economic conditions or effective financial interventions. Conversely, increasing filings per capita can indicate worsening economic situations, possibly due to employment issues, industry declines, or other localized economic stressors. Recent data suggests certain districts experiencing rising per capita filings, signaling local economic downturns or persistent financial vulnerabilities. Tracking these shifts weekly can offer policymakers targeted insights necessary for timely interventions.
9. Forecasting the expected bankruptcy filings for the remainder of 2025 involves extrapolating current trends, suggesting continued elevated levels similar to the latest week's figure of 13,363 filings. If current economic conditions persist, the annual total could remain substantially higher than the averages recorded prior to 2024. Economic stability or improvement in specific sectors could slightly lower filings, yet broad reductions seem unlikely without significant economic interventions or improvements. Should economic indicators like employment or inflation stabilize or improve significantly, filings might plateau or decline slightly. Overall, the current trajectory points towards sustained high bankruptcy filings for the foreseeable future of this year.
10. Looking beyond 2025, particularly after 2024, we can forecast continued trends of heightened filings unless economic fundamentals change dramatically. Structural economic issues such as rising debt levels, inflation, and income disparities could maintain upward pressure on bankruptcy filings. Additionally, broader economic disruptions, technological shifts, or sector-specific downturns could further influence these numbers upward in coming years. Without significant policy interventions aimed at debt reduction or economic stability, weekly filings are likely to persistently remain above pre-2024 levels. Therefore, planning and economic interventions should focus strategically on addressing underlying economic vulnerabilities to manage and mitigate bankruptcy trends effectively.

Gemini Advanced Analysis of the Bankruptcy Statistics

• National Trends: Across the United States, bankruptcy filings are up across all chapters, indicating a widespread increase in financial distress. Chapter 7 filings show the most significant jump, suggesting more individuals are seeking a fresh start financially.
• Business Bankruptcies: Chapter 11 filings, primarily used by businesses, are clustered in a few major districts, highlighting the role of specialized courts and legal expertise in handling complex reorganizations.
• Regional Differences: Bankruptcy filings are not evenly distributed across the country. Some districts show much higher rates of Chapter 7 filings, pointing to potential disparities in economic conditions and financial pressures faced by households in those areas.
• Urban vs. Rural: The data generally shows more bankruptcy filings in urban areas compared to rural ones, likely reflecting differences in population density, economic activity, and cost of living.
• Year-to-Date: So far in 2025, we've seen a noticeable rise in bankruptcy filings compared to the same period last year. This increase is driven by a surge in Chapter 7, Chapter 13, and Chapter 11 cases.
• Pre-Pandemic Comparison: While filings are up, they are still lower than the levels seen before the pandemic. This suggests that the economic recovery is still ongoing, but financial challenges persist for many.
• Population Matters: When we factor in population size, some districts with lower overall filings actually have higher bankruptcy rates per person. This highlights the importance of considering population density when assessing financial vulnerability.
• Accelerating Trends: The rate at which bankruptcy filings are increasing is not uniform. Some regions, particularly in the Southwest and Southeast, are experiencing a faster acceleration in filings, indicating growing financial pressure in those areas.
• Future Outlook: The trends suggest that bankruptcy filings will continue to rise throughout the rest of 2025, particularly for Chapter 7. This points to a potential ongoing wave of individuals seeking debt relief.
• Long-Term Projections: Bankruptcy filings are likely to remain elevated in the years to come, especially with factors like increasing student loan debt and high-interest rates. This indicates a long-term challenge for individuals and businesses alike.

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