*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 22nd, 2025)

Weekly bankruptcy filings saw a dramatic increase compared to the same week last year. Chapter 7 filings—a lifeline for many struggling households—were up 12.80% year-over-year (5,740 in 2024 to 6,475 in 2025). Chapter 13 filings, allowing individuals to restructure their debt, were up 6.56% year-over-year (3,460 in 2024 to 3,687 in 2025). Chapter 11 filings, often used by businesses dealing with insolvency, were up 0.72% year-over-year (138 in 2024 to 139 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

• For the week ending in the 20th week of 2025, a total of 10,308 bankruptcy filings were recorded across the United States. This number represents the combined activity of all filing chapters and districts. Chapter 7 filings made up the majority, with 6,475 filings, while Chapter 13 followed at 3,687. Chapter 11 accounted for 139 filings, and Chapter 12 saw just 7 filings. These figures show how Chapter 7 and Chapter 13 dominate the current bankruptcy landscape.
• One of the most striking details about this week is that Chapter 7 filings alone made up over 62% of the national total. Despite this being a high-volume week, it's actually slightly below the 2025 weekly average of 10,540.79 filings. Another intriguing point is that only 7 Chapter 12 filings were recorded, highlighting its relative rarity. Filings in some districts like GU remained at zero, showcasing vast filing variation. This underscores how unevenly bankruptcy pressure is distributed across the country.
• Looking at specific districts, the CAC district recorded the highest number of filings with 520 cases this week. In stark contrast, the GU district reported no filings at all. This wide range illustrates the significant variation in economic distress or filing behavior across jurisdictions. Most other districts reported filing volumes in the tens or low hundreds. The central concentration of filings in CAC suggests that economic or population factors may drive high activity in certain areas.
• Geographic disparities in filings remain a defining feature of the current data. With CAC posting 520 filings and GU posting none, the gap is not just numerical but systemic. Other districts like GAN also showed noteworthy changes, though in a downward direction this week. Such disparities may stem from differences in legal culture, economic conditions, or access to legal aid. Clearly, location continues to play a powerful role in the bankruptcy ecosystem.
• Through the 20th week of 2025, the national weekly filing average has been 10,540.79 cases. This week's total of 10,308 is slightly below that average, indicating relative consistency but a slight dip. Chapter 7 remains the most frequently chosen path, accounting for 6,475 filings this week alone. Chapter 13’s 3,687 filings affirm its ongoing popularity, especially in states with wage earner reorganization preferences. Overall, the year 2025 continues to follow an active but stable pattern in bankruptcy filings.
• When compared to previous years, 2025 is showing a noticeable increase in weekly filings. The overall average weekly filing count across earlier years was 8,728.23, significantly lower than this year's average of 10,540.79. This suggests either growing financial pressure or a normalization after pandemic-related disruptions. If this trend continues, 2025 could end up with one of the highest annual totals in recent memory. The current filing rates clearly exceed historical norms.
• While we lack exact population data per district, assuming uniform population distribution allows a basic per capita view. District CAC, with its 520 filings, leads per capita rates at approximately 0.00052 filings per person. On the other hand, GU’s rate remains effectively zero due to no reported cases. This type of analysis highlights not only volume but relative intensity of filings in a given population. A more accurate assessment would require actual population data, but the contrasts are still illustrative.
• Comparing per capita filing changes week-over-week, CAC saw the sharpest increase, while GAN experienced the steepest drop. CAC's per capita change was roughly +0.000076 per person, suggesting a regional surge. GAN declined by about -0.000109 per person, reflecting reduced activity or local economic improvement. These changes point to regional volatility and could indicate shifting financial conditions or local policy impacts. Such trends merit close monitoring for early warnings of broader economic shifts.
• If current trends hold, 2025 could see approximately 347,613 total filings by year-end. This estimate combines actual filings so far with a projection based on the year’s average weekly filings. Given that 32 weeks remain, and the average weekly filing is over 10,540, the projection remains robust. However, any major economic or legal change could shift the trajectory significantly. The consistency so far suggests a stable but elevated filing environment.
• Looking further ahead, historical growth patterns suggest that filings could rise by about 8% into 2026. Based on recent growth rates, next year’s filings might total around 191,373 if growth remains steady. Factors like inflation, interest rates, and unemployment will likely influence these numbers. Longer-term, the trend of increasing filings may reflect structural financial stress rather than temporary disruptions. Planning and policy must anticipate a continued upward trajectory in bankruptcy demand.

Claude 4.0 Sonnet Extended Analysis of the Bankruptcy Statistics

1. Overview of this week's National filings. Week 20 of 2025 recorded a total of 10,308 bankruptcy filings across all districts and chapters nationwide. Chapter 7 filings dominated the landscape with 6,475 cases, representing 62.8% of all bankruptcy activity for the week. Chapter 13 cases comprised the second-largest category with 3,687 filings, accounting for 35.8% of the total national volume. Business reorganization filings under Chapter 11 totaled 139 cases, while agricultural Chapter 12 filings remained minimal at just 7 cases nationwide. The combined Chapter 11 and Chapter 12 filings represented only 1.4% of all bankruptcy activity, highlighting the overwhelming dominance of individual consumer bankruptcy cases.

2. An interesting fact about this week's filings. The ratio between Chapter 7 and Chapter 13 filings reveals a fascinating trend in consumer financial distress patterns, with Chapter 7 liquidations outnumbering Chapter 13 reorganizations by nearly 2-to-1 (6,475 vs 3,687). Week 20 showed a modest week-over-week increase of 89 filings, representing a 0.9% growth from the previous week's total of 10,219 cases. Agricultural bankruptcy filings under Chapter 12 hit an extremely low point with only 7 cases nationwide, suggesting either seasonal farming patterns or improved agricultural economic conditions. The stark contrast between the highest-volume district (Central California with 520 filings) and the lowest (Virgin Islands with 2 filings) demonstrates a 260-fold difference in regional filing activity. Chapter 11 business reorganizations averaged fewer than 3 cases per district nationwide, indicating that business financial distress remains relatively contained compared to consumer bankruptcy pressures.

3. An overview of this week's district-level filings with reference to actual district filing numbers. The Central District of California led all jurisdictions with 520 total filings, comprising 437 Chapter 7 cases, 75 Chapter 13 cases, and 8 Chapter 11 cases. The Middle District of Florida followed with 469 total filings, including 365 Chapter 7 and 99 Chapter 13 cases, while the Northern District of Illinois recorded 432 filings with 231 Chapter 7 and 196 Chapter 13 cases. The Northern District of Georgia posted 375 total filings, and the Eastern District of Michigan rounded out the top five with 321 filings, demonstrating how major metropolitan areas drive national bankruptcy volume. At the other extreme, 14 districts recorded 20 or fewer total filings, including Vermont with 5 cases, Alaska with 8 cases, and the Virgin Islands with just 2 bankruptcy filings for the entire week.

4. Geographic (district) disparities in filings. Regional bankruptcy filing patterns reveal dramatic disparities across the federal court system, with 15 districts recording 200 or more filings while 14 districts handled 20 or fewer cases during week 20. The Central District of California's 520 filings represent more than 5% of all national bankruptcy activity, concentrated in a single jurisdiction covering the Los Angeles metropolitan area. High-population states show significant internal variation, with Florida's Middle District recording 469 filings compared to much lower volumes in the Northern and Southern Districts, illustrating how economic conditions vary even within state boundaries. The geographic concentration becomes even more pronounced when considering that the top 10 districts collectively handled approximately 3,203 filings, representing roughly 31% of all national bankruptcy cases. Small-population districts like the Virgin Islands, Vermont, and Alaska demonstrate that geographic isolation and smaller economies result in minimal bankruptcy filing activity, with some districts processing fewer cases in a week than major metropolitan districts handle in a single day.

5. Current year focus. The 2025 bankruptcy filing trend shows remarkable consistency with an average of 10,529 filings per week through the first 20 weeks of the year. Weekly totals have ranged from a low of 7,529 in week 1 to peaks of 13,764 in week 9 and 13,555 in week 18, indicating significant week-to-week volatility around the annual trend. Week 20's total of 10,308 filings sits slightly below the year-to-date average, suggesting a temporary moderation from the higher volumes seen in recent weeks. The cumulative total of 210,583 filings through week 20 projects to approximately 547,500 annual filings if current trends continue through the remainder of 2025. This pace represents a substantial increase from 2024's full-year total of 503,715 filings, indicating that bankruptcy filing pressures continue to intensify across the American economy.

6. Comparative analysis with previous years. Week 20 comparisons across multiple years reveal a consistent upward trajectory in bankruptcy filing activity, with 2025's 10,308 filings representing a 10.3% increase over 2024's corresponding week total of 9,342 cases. The year-over-year progression shows 2023's week 20 total of 8,516 filings and 2022's 7,009 filings, demonstrating a 47% increase in weekly filing volume over just three years. Annual averages paint an even starker picture, rising from 7,275 weekly filings in 2022 to 8,561 in 2023, then 9,687 in 2024, and currently 10,529 in 2025. This represents a 44.7% increase in average weekly bankruptcy filings from 2022 to 2025, reflecting sustained financial pressure on American households and businesses. The accelerating trend suggests that economic recovery following recent disruptions has not alleviated the underlying conditions driving individuals and businesses to seek bankruptcy protection.

7. Analyzing the filings per capita. While precise per capita calculations require current district population data not available in this dataset, the filing patterns strongly correlate with known population centers and economic activity levels. High-volume districts like Central California (520 filings), Middle Florida (469 filings), and Northern Illinois (432 filings) correspond to major metropolitan areas with populations in the millions, suggesting per capita filing rates that likely exceed national averages. Rural and smaller districts like Alaska (8 filings), Vermont (5 filings), and the Virgin Islands (2 filings) serve much smaller populations, potentially indicating either lower per capita filing rates or simply fewer residents facing financial distress. The Middle District of Florida's 469 filings likely serve a population base that includes the Tampa Bay and Orlando metropolitan areas, suggesting bankruptcy filing rates that could range from 1-3 cases per 10,000 residents based on typical district population estimates. Large states with multiple districts show varying per capita patterns, with Texas's Eastern District recording more activity than expected for its population size, while some traditionally wealthy districts show relatively modest filing volumes despite larger population bases.

8. Analyzing the changing filings per capita. The 47% increase in week 20 filings from 2022 to 2025 suggests that per capita bankruptcy filing rates have risen substantially faster than population growth, which typically averages less than 1% annually. Districts serving stable population bases like Vermont and Alaska show relatively modest changes in absolute filing numbers, implying their per capita rates have likely increased proportionally with national trends. Major metropolitan districts have experienced disproportionate increases, with Central California's leadership position suggesting that high-cost-of-living areas may be experiencing faster per capita filing growth than national averages. The consistency of increases across diverse geographic regions indicates that rising per capita filing rates reflect broad economic pressures rather than localized phenomena affecting specific districts or states. If population growth averaged 2-3% over the three-year period while bankruptcy filings increased 47%, this suggests per capita filing rates have risen by approximately 40-45%, representing a significant deterioration in household financial stability across American communities.

9. Forecast the expected filing numbers for the rest of the year. Based on the current 2025 average of 10,529 weekly filings through 20 weeks, the remaining 32 weeks of the year could generate approximately 336,928 additional bankruptcy cases. This projection would result in a total 2025 filing volume of approximately 547,500 cases, representing an 8.7% increase over 2024's 503,715 total filings. However, seasonal patterns typically show higher filing volumes in the second half of the year as individuals exhaust resources and make financial decisions before year-end, suggesting the actual total could reach 560,000-580,000 filings. The weekly volatility seen in 2025, with peaks above 13,000 and valleys below 8,000, indicates that quarterly totals could vary significantly based on economic conditions and policy changes. Conservative estimates suggest a floor of 540,000 annual filings, while adverse economic conditions could push totals toward 600,000 cases, representing the highest annual bankruptcy filing volume in over a decade.

10. Forecast the trends of increasing filings after 2024. The sustained acceleration in bankruptcy filings from 7,275 weekly averages in 2022 to 10,529 in 2025 suggests this upward trajectory will likely continue into 2026 and beyond. Economic factors including persistent inflation, high interest rates, reduced savings rates, and increasing consumer debt levels point toward continued financial stress for American households, potentially driving weekly averages above 11,000-12,000 cases by 2026. The demographic trend of aging Baby Boomers, many with insufficient retirement savings, could contribute to sustained increases in consumer bankruptcy filings over the next decade. Geographic expansion of high-cost-of-living pressures from traditional coastal markets to previously affordable inland areas suggests that districts currently showing modest filing volumes may experience accelerated growth. Without significant policy interventions or dramatic improvements in wage growth relative to living costs, annual bankruptcy filings could approach 650,000-700,000 cases by 2027, representing a doubling of pre-2020 filing volumes and indicating a fundamental shift in American household financial stability.

ChatGPT 4.5 Analysis of this Week's Bankruptcy Statistics

1. The total national filings for the latest completed week, Week 20 of 2025, stand at 10,308 cases. Chapter 7 filings represent the largest portion, with 6,475 cases, demonstrating their persistent dominance in bankruptcy filings. Chapter 13 follows closely, totaling 3,687 cases, reflecting significant activity among individuals attempting debt reorganization. Chapter 11 business filings amounted to 139 cases, marking a modest portion of total filings this week. The agricultural Chapter 12 filings remain very minimal at only 7 cases, highlighting their specialized and limited usage.
2. An interesting aspect of the week's data is the substantial dominance of Chapter 7 filings, making up approximately 63% of the total weekly filings (6,475 out of 10,308). This proportion highlights a continued preference for complete liquidation among debtors nationwide. Conversely, Chapter 11 filings comprise only about 1.35% of total cases, underscoring the relatively rare need for business reorganization. Additionally, the very low occurrence of Chapter 12 filings (0.07%) emphasizes how limited bankruptcy filings are in the agricultural sector. Overall, the significant difference between Chapter 7 and Chapter 13 filings further indicates distinct debtor preferences.
3. District-level filings show notable variance for the latest week. For example, the Northern District of Alabama reported a relatively high number of Chapter 7 filings at 62, contrasted with the Middle District of Alabama, which reported only 16 Chapter 7 filings. Alaska maintained a significantly lower Chapter 7 filing count at just 6 filings. The disparity between districts like Northern Alabama and Alaska highlights local economic conditions and demographic factors influencing filing rates. Such contrasts provide insight into regional economic health across different U.S. jurisdictions.
4. The latest week exhibits substantial geographic disparities in filings across districts. High filing counts were prominently recorded in densely populated or economically challenged regions like the Northern District of Alabama (62 Chapter 7 filings) compared to less populated or economically stable areas such as Alaska (6 Chapter 7 filings). This suggests distinct economic pressures and financial stressors faced by populations in varying locations. The variability in filing rates likely reflects disparities in employment opportunities, regional economic downturns, or differing local policies. Understanding these disparities is crucial for policymakers aiming to mitigate financial distress geographically.
5. In 2025, the current year has shown consistent trends, with Week 20 maintaining the year’s overall filing patterns. The total filings this week, 10,308 cases, align with previously observed weekly averages for 2025. Chapter 7 filings continue to dominate this year’s trend, as seen clearly with 6,475 filings this week alone. However, the relative stability of Chapter 13 filings at 3,687 indicates ongoing individual efforts to restructure debts. Chapter 11 filings remain stable but modest, reflecting continued cautious business conditions nationwide.
6. Comparing the latest week of 2025 to the same week in prior years shows subtle shifts in bankruptcy filing patterns. Historically, weekly filings hovered around slightly lower numbers in preceding years, signaling a modest upward trend in filings. The current 10,308 total filings slightly surpass comparable weeks from the last two years, hinting at increased financial distress in the current economy. Particularly notable is the increasing prevalence of Chapter 7 filings, which may signal broader underlying financial vulnerabilities. Conversely, the steadiness of Chapter 11 filings indicates relatively stable business conditions compared to previous years.
7. Analyzing filings per capita suggests an underlying economic narrative for the latest week. Regions with higher populations and more severe economic conditions exhibit elevated filings per capita, as reflected in districts like Northern Alabama. Smaller or economically stronger districts like Alaska display significantly lower per capita filing rates. These discrepancies highlight local economic resilience or vulnerability more effectively than raw totals. Addressing these per capita variations could inform targeted economic interventions.
8. Changes in filings per capita over recent weeks underscore shifts in local economic dynamics. For instance, the slight uptick in filings per capita in economically challenged districts highlights increased financial strain. Conversely, stable or declining per capita filings in wealthier or more economically robust districts suggest improving or stable local conditions. Monitoring these per capita trends helps in identifying emerging economic challenges early, facilitating prompt response strategies. Overall, the latest weekly data demonstrates subtle but informative shifts in financial health at the local level.
9. Forecasting filings for the remainder of 2025 based on the latest weekly data of 10,308 cases, it's reasonable to anticipate sustained moderate increases in weekly bankruptcy cases. If current economic conditions persist, the year-end weekly filings might approach approximately 10,500 to 11,000 cases. Chapter 7 filings, being the most prevalent, are projected to continue their dominance, potentially rising proportionally. Meanwhile, Chapter 13 cases are expected to grow slowly, reflecting ongoing individual financial recovery efforts. Chapter 11 filings are anticipated to remain relatively stable, given current economic forecasts for business sectors.
10. Post-2024 trends suggest a gradual but steady increase in bankruptcy filings into subsequent years. Current patterns and recent increases in Chapter 7 filings hint at persistent economic vulnerabilities among households and small businesses. Economic factors such as rising consumer debt levels, fluctuating employment rates, and interest rate changes may significantly influence future filings. Consequently, bankruptcy filings are expected to trend upward slightly but consistently in the years following 2025. Long-term projections emphasize the need for sustained economic and financial strategies to mitigate these future bankruptcy risks 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.

What We Are Reading

Want to know about the news articles that caught our eye this week? Start here.

• Federal Student Loans are Due Again:  A record percentage of borrowers are seriously delinquent.
• New York Fed Household Debt and Credit Report: Household debt up to $18.04T.
• New York Fed on Shadow Delinquency Rate of Student Loans: "We expect to see more than nine million student loan borrowers face substantial declines in credit standing over the first quarter of 2025."
• New Garnishments Incoming: Trump administration to garnish wages of 5.3 million defaulted student loan borrowers this summer.
• Warning Lights Flash as Credit Defaults Rise: "Industry-wide, the rate of charge-offs is now higher than the level before the Covid-19 outbreak, reversing a period of stellar credit card payments during the pandemic when consumers benefited from government stimulus programmes."
• Clunky Old Software is the Invisible $1.52 Trillion Problem: Old code piles up and raises the risk of hacks and other breaches, even on new devices. ‘Technical debt' has a compounding effect.