*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 June 2nd, 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 17.33% year-over-year (7,132 in 2024 to 8,368 in 2025). Chapter 13 filings, allowing individuals to restructure their debt, were up 8.52% year-over-year (4,003 in 2024 to 4,344 in 2025). Chapter 11 filings, often used by businesses dealing with insolvency, were down 54.76% year-over-year (347 in 2024 to 157 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 most recently completed week, Week 22 of 2025, the total number of national bankruptcy filings reached 12,875. This total includes filings from all districts and across all bankruptcy chapters. Of these, Chapter 7 filings contributed the most, accounting for 8,368 cases. Chapter 13 followed with 4,344 filings, while Chapter 11 and Chapter 12 recorded 157 and 6 filings, respectively. This weekly total marks a notable activity level across the country in terms of consumer and business financial distress.
• One interesting fact about this week’s data is the overwhelming dominance of Chapter 7 filings. With 8,368 out of 12,875 total filings, Chapter 7 accounts for over 65% of all bankruptcies this week. This chapter primarily represents liquidation, signaling widespread consumer insolvency. The combined Chapter 11 and Chapter 12 filings represent less than 1.3% of total cases, showing their relative rarity. This concentration in Chapter 7 highlights a persistent trend in consumer financial stress rather than business restructuring.
• District-level data reveals substantial variation in filings, with some regions contributing heavily to the national totals. For instance, the Northern District of Alabama recorded 73 Chapter 7 cases, while other districts such as Alaska reported only 7. Many districts across the South and Midwest had double-digit Chapter 7 filings, illustrating regional pockets of financial hardship. Notably, the Southern and Central regions generally displayed higher filing volumes compared to more sparsely populated Western districts. The distribution emphasizes how economic pressures are not evenly spread across the country.
• Geographic disparities remain stark, as some districts consistently show higher weekly filings than others. Heavily populated or economically strained areas like Alabama and Georgia often record dozens of filings weekly, while places like Vermont or North Dakota may show fewer than 10. These differences can stem from regional unemployment rates, access to credit, or even cultural attitudes toward bankruptcy. The high filing volumes in specific Southern states reflect systemic issues such as lower median incomes and higher debt-to-income ratios. Conversely, low numbers in wealthier or rural states suggest relative financial stability or underutilization of bankruptcy protections.
• Looking solely at 2025, there is a noticeable upward trend in weekly filings. The average weekly total for previous weeks this year is approximately 10,552, significantly lower than the latest week’s 12,875 filings. This nearly 22% increase suggests that filings may be accelerating as the year progresses. Factors contributing to this rise might include lingering inflation, high interest rates, or the expiration of pandemic-era financial supports. If this trajectory continues, 2025 could see the highest filing volumes in several years.
• Comparing the current data with previous years shows a clear resurgence in bankruptcy activity. While 2023 and 2024 saw lower average weekly filings—often below the 10,000 mark—2025 has consistently trended higher. This week's total of 12,875 is one of the highest weekly figures in the dataset. The rise may reflect worsening economic conditions or a return to pre-pandemic filing patterns after years of unusually low bankruptcy rates. In short, filings are not just increasing this year—they are outpacing recent historical norms.
• When adjusted for population, the national bankruptcy filing rate this week is approximately 3.9 per 100,000 people. This is based on an estimated national population of 330 million. This per capita rate shows an uptick compared to previous weeks in 2025, which averaged around 3.2 per 100,000. Though the increase may seem modest, it reflects thousands more individuals seeking financial relief across the country. This upward movement in per capita terms confirms that the rise in filings is not merely due to population growth.
• The trend in per capita filings indicates a meaningful shift in consumer financial health. The increase from 3.2 to 3.9 filings per 100,000 people per week represents a 22% rise in individual bankruptcy activity. This suggests that more people are reaching a breaking point with debt and financial obligations. Historically, such shifts often precede broader economic slowdowns, as bankruptcies tend to rise when households exhaust other financial options. Continued monitoring of this trend will be crucial in assessing the nation’s economic stability.
• If the current pace continues, we can expect approximately 669,500 total filings in 2025 (12,875 × 52 weeks). This would be a sharp increase from recent years, especially when considering the average was much lower in 2023 and 2024. Even if weekly totals taper off slightly, the year-end figure will likely surpass 600,000. The weekly growth observed this year indicates strong upward momentum, potentially driven by both economic pressure and delayed filings from prior years. Future weeks will determine whether this acceleration stabilizes or continues.
• Looking beyond 2025, the increasing trend in filings suggests structural financial stress may persist. With Chapter 7 dominating and Chapter 13 also showing strong numbers, it is clear that both consumers and wage earners are under strain. If inflation, interest rates, or employment conditions don’t improve, filings may continue climbing into 2026 and beyond. Historical patterns after economic shocks show a multi-year rebound in bankruptcies, often peaking two to three years after the initial event. Thus, unless strong economic recovery materializes, elevated bankruptcy activity is likely to remain through at least 2027.

Claude 4.0 Sonnet Extended Analysis of the Bankruptcy Statistics

1. Overview of this week's National filings. Week 22 of 2025 recorded a total of 12,875 bankruptcy filings nationwide, representing a significant weekly activity level across all judicial districts. Chapter 7 filings dominated the landscape with 8,368 cases, comprising approximately 65% of all bankruptcy activity for the week. Chapter 13 filings contributed 4,344 cases, making up about 34% of total weekly filings. Business reorganization under Chapter 11 generated 157 filings, while agricultural reorganizations under Chapter 12 accounted for just 6 cases. This distribution pattern reflects the continued prevalence of consumer bankruptcy cases over commercial restructuring activities.

2. An interesting fact about this week's filings. The most striking aspect of week 22's filing data is the dramatic 2,011-case increase from the previous week, which recorded 10,864 total filings. This represents an 18.5% week-over-week surge, indicating either seasonal filing patterns or external economic pressures affecting debtor behavior. The increase was primarily driven by Chapter 7 liquidation cases, suggesting consumers are choosing immediate debt relief over payment plan alternatives. Compared to the same week in 2024, which saw 11,489 filings, this year shows a 1,386-case increase, representing a 12.1% year-over-year growth. This substantial weekly jump positions week 22 as one of the highest-volume filing periods recorded in the current dataset.

3. An overview of this week's district-level filings with reference to actual district filing numbers. The Central District of California led all judicial districts with 685 bankruptcy filings in week 22, demonstrating the concentration of cases in major metropolitan areas. The Southern District of Florida recorded 456 filings, while the District of Nevada contributed 445 cases to the national total. The Eastern District of California generated 397 filings, and the Middle District of Florida added 366 cases during this period. These five districts alone accounted for 2,349 filings, representing approximately 18.2% of all national bankruptcy activity for the week, highlighting the geographic concentration of financial distress in populous states.

4. Geographic (district) disparities in filings. The filing distribution across the nation's 94 federal judicial districts reveals stark regional disparities, with the top 10 districts handling 4,127 cases while numerous smaller districts processed fewer than 20 filings each. California's multiple districts collectively dominated the landscape, with the Central, Eastern, Northern, and Southern districts contributing over 1,200 combined filings during week 22. Florida's three districts accumulated 967 total filings, while Texas districts contributed approximately 890 cases across their four judicial divisions. The geographic concentration reflects population density, economic activity levels, and regional economic conditions, with urban coastal areas experiencing disproportionately higher bankruptcy filing rates. Rural and less populous districts like Wyoming, Vermont, and Delaware recorded minimal filing activity, often in single digits, emphasizing the correlation between population centers and financial distress patterns.

5. Current year focus. Through the first 22 weeks of 2025, total bankruptcy filings have reached 234,465 cases, establishing a robust pace that suggests significant ongoing economic pressure on both consumers and businesses. The year-to-date Chapter 7 filings represent the largest segment, indicating widespread consumer preference for liquidation over rehabilitation payment plans. Chapter 13 filings have maintained substantial volume, suggesting many debtors still possess sufficient income to attempt debt restructuring through court-supervised payment plans. The current weekly average of 10,657 filings per week, based on the 22-week period, indicates sustained high-volume activity throughout the early months of 2025. This pace represents a continuation of elevated filing trends that began emerging in previous years, suggesting structural economic challenges affecting household and business finances.

6. Comparative analysis with previous years. Week 22 of 2025's total of 12,875 filings represents a 49% increase compared to the same week in 2023, which recorded 8,620 cases, demonstrating accelerating bankruptcy trends over the two-year period. The 2024 comparison shows 11,489 filings for the same week, indicating a 12.1% year-over-year increase and sustained upward momentum in filing activity. Year-to-date comparisons reveal 2025's 234,465 filings significantly exceed the equivalent 22-week period in 2024, which totaled 211,140 cases, representing a 23,325-case increase. The three-year trend from 2022 to 2025 shows consistent growth, with week 22 filings rising from 6,639 in 2022 to the current 12,875 level. This progression indicates a 94% increase over the three-year period, suggesting deepening financial challenges across American households and businesses.

7. Analyzing the filings per capita. Based on the current U.S. population of approximately 335 million people, week 22's 12,875 filings represent a weekly bankruptcy rate of 3.8 filings per 100,000 Americans. The annualized rate, extrapolated from current weekly averages, suggests approximately 198 bankruptcy filings per 100,000 people annually, indicating widespread financial distress affecting nearly 2 out of every 1,000 Americans. California's Central District, with 685 filings serving a population of roughly 19 million residents, demonstrates a localized rate of 3.6 filings per 100,000 people for just that single week. The concentration in urban areas suggests per capita rates in major metropolitan regions significantly exceed national averages, particularly in high cost-of-living areas. These per capita metrics highlight that bankruptcy filing rates have reached levels affecting substantial portions of the American population, indicating systemic rather than isolated financial challenges.

8. Analyzing the changing filings per capita. The per capita filing rate has shown consistent acceleration, with the current weekly rate of 3.8 per 100,000 Americans representing a significant increase from previous periods. Comparing week 22 across years, the per capita rate has grown from approximately 2.0 per 100,000 in 2022 to the current 3.8 level, nearly doubling over the three-year span. The year-to-date 2025 pace suggests an annualized per capita rate approaching 200 filings per 100,000 Americans, compared to roughly 160 per 100,000 based on 2024's equivalent period. This escalating trend indicates bankruptcy filings are outpacing population growth, suggesting deteriorating household financial conditions rather than demographic factors. The increasing per capita burden reflects mounting economic pressures that are affecting broader segments of the population, with geographic clustering in states like California, Florida, and Texas showing particularly acute per capita filing increases.

9. Forecast the expected filing numbers for the rest of the year. Based on the current 22-week average of 10,657 filings per week, 2025 is projected to reach approximately 554,190 total bankruptcy filings by year-end, assuming seasonal patterns remain consistent with historical norms. The remaining 30 weeks of 2025, at current pace, would generate approximately 319,725 additional filings, bringing the annual total well above recent years. However, the recent acceleration shown in week 22's 12,875 filings suggests the pace may be quickening, potentially pushing annual totals toward 600,000 cases if higher weekly volumes persist. Seasonal factors typically show increased filing activity in spring and fall months, suggesting Q3 and Q4 could exceed current weekly averages. The projected 554,190 annual total would represent a substantial increase over previous years, indicating 2025 could become a record year for bankruptcy filings in the current economic cycle.

10. Forecast the trends of increasing filings after 2024. The trajectory established through week 22 of 2025 suggests bankruptcy filings will continue accelerating beyond current levels, with annual totals potentially reaching 600,000 to 650,000 cases by 2026 if current growth rates persist. The consistent year-over-year increases, particularly the 49% jump from week 22 of 2023 to 2025, indicate structural economic factors are driving long-term filing growth rather than temporary disruptions. Economic indicators such as elevated consumer debt levels, housing affordability challenges, and persistent inflation suggest the underlying conditions fueling bankruptcy growth will likely continue through 2025 and beyond. The geographic concentration in high-population, high-cost states indicates these trends may intensify as economic pressures mount in major metropolitan areas. Without significant economic policy interventions or improvement in household financial conditions, the filing trajectory suggests annual totals could exceed 700,000 cases by 2027, representing a substantial increase from historical norms and indicating widespread financial distress across American households and businesses.

ChatGPT 4.5 Analysis of this Week's Bankruptcy Statistics

1. This past week saw 12,875 national bankruptcy filings in total across all districts, indicating a considerable volume of financial distress. Chapter 7 accounted for the highest portion with 8,368 filings, signifying widespread individual liquidations. Chapter 11, typically associated with business restructuring, totaled 157 filings, reflecting moderate corporate financial challenges. Chapter 12, focused on family farms, remained minimal at 6 filings. Chapter 13 filings numbered 4,344, reflecting significant individual debt repayment reorganizations.
2. A notable fact from this week's filings is the high predominance of Chapter 7 filings, making up approximately 65% of all national filings. Chapter 13 filings, although significant, represented about 34% of the total, underscoring the severe financial stress among individuals pursuing debt restructuring. The comparatively minor presence of Chapter 11 cases, despite current economic conditions, suggests stability among larger corporations. Chapter 12 filings remained extremely low, highlighting a relatively stable agricultural economic condition. This week's distribution underscores the ongoing dominance of personal over corporate financial distress.
3. At the district level, the Northern District of Alabama recorded 73 Chapter 7 filings, illustrating significant individual financial stress. In contrast, the Middle District of Alabama recorded 15 filings, showing a notable difference even within the same state. Alaska had a low filing count with only 7 cases, highlighting regional variations and economic disparities. These numbers indicate distinct economic conditions affecting each district. Such district-specific data underscore varying local economic health and vulnerabilities.
4. The geographic disparities in bankruptcy filings this week are pronounced, with densely populated districts showing significantly higher filing volumes. Southern and eastern states typically reported elevated filings compared to the northwestern states, reflecting distinct regional economic dynamics. For example, the difference between districts in Alabama alone highlights substantial local variations. This disparity may relate to local employment rates, economic sectors, and regional economic policies. Recognizing these regional trends can aid policymakers in targeted economic interventions.
5. Focusing specifically on the year 2025, filings continue to reveal a trend of elevated financial stress compared to recent years. Week 22 alone had over 12,800 filings, reflecting substantial economic pressures midway through the year. Chapter 7 filings particularly signal persistent economic hardship among individuals nationwide. The stable yet modest number of Chapter 11 filings this year suggests controlled corporate financial stress. This year's trajectory remains critical in understanding the broader economic context and policy implications.
6. Comparing this week's filings to the same week in previous years, filings appear elevated, signifying increasing financial pressures. Historically, similar weeks in prior years typically reported fewer total filings, indicating worsening financial conditions. For example, compared to week 22 in 2024, the total filings of 12,875 represent a notable year-over-year increase. Chapter-specific trends also indicate heightened economic distress, particularly in Chapter 7 filings. Such year-over-year increases highlight a deteriorating economic situation affecting personal financial stability.
7. When considering bankruptcy filings per capita, densely populated districts generally exhibit higher raw filing numbers but often lower filings per capita. Conversely, districts with smaller populations, like Alaska, show fewer filings overall but can appear disproportionately affected per capita. For instance, Alaska's 7 filings this week might indicate greater per capita distress compared to larger districts. Examining per capita filings is essential for understanding the genuine intensity of economic distress at a regional level. Such analysis aids in precise resource allocation and targeted economic support measures.
8. The changing rate of filings per capita reveals evolving economic stresses at a local level. Districts that traditionally reported lower filings per capita but now show rising rates may indicate new economic vulnerabilities. Conversely, districts with declining per capita rates could reflect improving economic conditions or successful economic interventions. Week-over-week or month-over-month per capita changes offer clearer insights into emerging economic trends. Tracking these per capita changes helps identify economically vulnerable districts proactively.
9. Projecting forward for the remainder of 2025, filings are expected to remain high, driven primarily by ongoing economic uncertainties and financial instability among individuals. Based on recent trends and historical seasonal patterns, weekly national filings could consistently exceed 12,000 filings. Chapter 7 filings, in particular, may dominate due to persistent economic hardships. Limited growth in Chapter 11 suggests stable but cautious corporate recovery. Overall, the outlook for 2025 indicates sustained economic challenges with persistently high bankruptcy filing levels.
10. Looking beyond 2024 and into subsequent years, bankruptcy filings might continue increasing unless there is significant economic recovery or substantial policy interventions. Long-term economic indicators suggest persistent individual financial distress, potentially fueling further Chapter 7 and Chapter 13 increases. Businesses might face moderate yet stable challenges reflected in Chapter 11 filings. Structural economic adjustments or governmental financial support programs will play crucial roles in mitigating these rising trends. Monitoring and analyzing these trends will be essential for shaping economic policy and response strategies moving forward.

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.