*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 August 18th, 2025)

Weekly bankruptcy filings saw a small increase compared to the same week last year. Chapter 7 filings—a lifeline for many struggling households—were up 8.94% year-over-year (5,859 in 2024 to 6,383 in 2025). Chapter 13 filings, allowing individuals to restructure their debt, were up 3.96% year-over-year (3,609 in 2024 to 3,752 in 2025). Chapter 11 filings, often used by businesses dealing with insolvency, were down 16.67% year-over-year (216 in 2024 to 180 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.

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.

AI Analysis of this Week's Bankruptcy Statistics

We exported our dataset containing the daily filing numbers for every chapter and district to different AI models and asked for an analysis. Below are the exact results for each model.

Claude 4.0 Opus Extended Analysis of the Bankruptcy Statistics

1. Overview of this week's National filings. Week 33 of 2025 recorded a total of 10,322 bankruptcy filings nationally, representing a moderate increase from the previous week's 9,793 filings. This represents a week-over-week growth of 5.4%, continuing the elevated filing pattern observed throughout 2025. The 10,322 filings this week are distributed across four bankruptcy chapters, with Chapter 7 liquidations accounting for 6,383 filings and Chapter 13 reorganizations comprising 3,752 filings. Chapter 11 business reorganizations contributed 180 filings, while Chapter 12 family farmer bankruptcies remained minimal at just 7 filings. The national total of 10,322 filings for this week sits slightly below the year-to-date average of 10,679 weekly filings for 2025.
2. An interesting fact about this week's filings. A striking pattern in Week 33's data reveals that Chapter 7 liquidation filings dominate at 61.8% of all bankruptcy cases, totaling 6,383 filings nationally. This concentration suggests that more individuals and businesses are choosing complete liquidation over reorganization, potentially indicating deeper financial distress. Chapter 13 personal reorganizations represent 36.3% with 3,752 filings, while business-related Chapter 11 filings account for only 1.7% with 180 cases. The minimal presence of Chapter 12 filings at just 7 cases (0.1%) reflects the specialized nature of agricultural bankruptcy protections. This distribution pattern of 6,383 Chapter 7 filings versus 3,752 Chapter 13 filings represents a ratio of 1.7 to 1, highlighting Americans' increasing preference for debt discharge over repayment plans.
3. An overview of this week's district-level filings with reference to actual district filing numbers. The Central District of California leads all districts with 508 bankruptcy filings in Week 33, followed closely by the Middle District of Florida with 474 filings. The Northern District of Illinois recorded 426 filings, while the Northern District of Georgia saw 352 filings, and the Eastern District of Michigan reported 340 filings. At the state level, California's four districts combined for 941 total filings, while Florida's three districts accumulated 790 filings, and Texas's four districts totaled 592 filings. The concentration of filings in major metropolitan districts is evident, with the top 10 districts accounting for approximately 3,397 filings, representing nearly one-third of the national total of 10,322.
4. Geographic (district) disparities in filings. Dramatic geographic disparities emerge in the Week 33 data, with the Central District of California's 508 filings representing 127 times more than Alaska's 4 filings. The territories show the lowest activity, with Guam, Northern Mariana Islands, and Virgin Islands each recording 0 filings, while Vermont matches Alaska at just 4 filings. The Southern District of Florida adds 276 filings to Florida's total, while Ohio's Northern District contributes 275 filings, and Arizona reports 262 filings as a single district. New Jersey's single district recorded 239 filings, demonstrating that even smaller states can generate significant bankruptcy activity. This geographic concentration means the top 10 districts generated 3,397 filings while the bottom 20 districts combined for fewer than 200 filings.
5. Current year focus. Through the first 33 weeks of 2025, the nation has accumulated 352,408 total bankruptcy filings, averaging 10,679 filings per week. This represents an 11.0% increase over the same period in 2024, when 317,425 filings were recorded through Week 33. The recent eight-week average of 11,010 filings surpasses the year-to-date average, indicating an acceleration in filing rates as 2025 progresses. Week 31 of 2025 saw the year's highest single-week total at 14,005 filings, demonstrating significant volatility in weekly filing patterns. Based on current trends, 2025 is projected to reach approximately 555,310 total filings, which would represent the highest annual total since the data series began.
6. Comparative analysis with previous years. Week 33 of 2025's 10,322 filings represents a 6.5% increase over Week 33 of 2024's 9,691 filings and a substantial 19.8% increase over Week 33 of 2023's 8,613 filings. The average weekly filings have grown from 8,561 in 2023 to 9,687 in 2024, and now 10,679 through Week 33 of 2025. This represents year-over-year growth rates of 13.2% from 2023 to 2024 and 10.2% from 2024 to 2025, demonstrating consistent double-digit growth. Annual totals show the same trajectory, with 2023 recording 445,161 filings, 2024 reaching 503,731 filings, and 2025 projected to hit 555,310 filings. The compound annual growth rate from 2023 to projected 2025 equals approximately 11.7%, indicating sustained momentum in bankruptcy filing increases.
7. Analyzing the filings per capita. Week 33's 10,322 filings translate to 3.08 bankruptcy filings per 100,000 Americans, based on an estimated 2025 population of 335 million. This represents an increase from 2.91 per 100,000 in Week 33 of 2024 and 2.59 per 100,000 in Week 33 of 2023. On an annualized basis, 2025 is projected to reach 165.8 filings per 100,000 population, compared to 151.0 in 2024 and 134.1 in 2023. This means approximately 1 in every 603 Americans is expected to file for bankruptcy in 2025, compared to 1 in 662 in 2024. The per capita filing rate has increased by 23.7% from 2023 to 2025, outpacing population growth and indicating genuine increases in financial distress.
8. Analyzing the changing filings per capita. The per capita bankruptcy filing rate has accelerated from 134.1 per 100,000 in 2023 to a projected 165.8 per 100,000 in 2025, representing a 23.7% increase over two years. This acceleration exceeds both population growth (approximately 0.9% over the same period) and inflation rates, suggesting real increases in financial hardship. The weekly per capita rate for Week 33 alone has grown from 2.59 to 3.08 per 100,000, a 19% increase over two years. The gap between filing growth (11.0% year-to-date) and population growth (0.5%) indicates that bankruptcy is becoming more common relative to the population size. If current trends continue, the per capita rate could exceed 180 per 100,000 by 2026, returning to levels not seen since the last major economic downturn.
9. Forecast the expected filing numbers for the rest of the year. Based on the current average of 10,679 weekly filings through Week 33, the remaining 19 weeks of 2025 are projected to add approximately 202,901 filings. This would bring the 2025 annual total to approximately 555,310 filings, representing a 10.2% increase over 2024's 503,731 filings. The recent eight-week momentum showing 11,010 average weekly filings suggests the back half of the year could exceed projections if current trends persist. Seasonal patterns typically show increased filings in autumn months, which could push the annual total closer to 560,000 filings. With 352,408 filings already recorded and weekly averages trending upward from 10,340 in the first quarter to 11,010 recently, the year-end projection of 555,310 appears conservative.
10. Forecast the trends of increasing filings after 2024. The consistent growth trajectory from 445,161 filings in 2023 to 503,731 in 2024 and a projected 555,310 in 2025 suggests bankruptcy filings will continue rising through 2026 and beyond. If the current 10-11% annual growth rate persists, 2026 could see approximately 611,000 filings, with 2027 potentially exceeding 670,000 filings. The momentum analysis shows recent weeks averaging 6.5% higher than early 2025, indicating acceleration rather than deceleration in filing rates. Per capita rates growing from 134.1 to a projected 165.8 per 100,000 over just two years suggest structural economic pressures are building rather than dissipating. Without significant economic intervention or improvement, the combination of elevated interest rates, inflation impacts, and accumulated pandemic-era debt suggests bankruptcy filings could reach 700,000 annually by 2028, levels not seen since the 2008 financial crisis aftermath.

ChatGPT 4o Pro Analysis of this Week's Bankruptcy Statistics

1. This past week, which corresponds to week 33 of 2025, saw a NationalTotal of 10,322 filings across all districts. The breakdown shows 6,383 Chapter 7 filings, 180 Chapter 11 filings, 7 Chapter 12 filings, and 3,752 Chapter 13 filings. This level of volume indicates a robust week compared to some of the earlier stretches of the year. With Chapter 7 leading the charge, liquidation cases dominate the national picture. The national weekly total solidifies the ongoing trend of elevated filings compared to prior years.
2. An interesting fact about this week is that Chapter 12 filings were only 7 nationwide, the lowest share among all chapters. This represents less than 0.1% of the total 10,322 filings. In contrast, Chapter 7 filings alone accounted for more than 61% of the total national filings. This discrepancy underlines how family farm and fishery cases remain a very niche portion of the bankruptcy landscape. It also highlights the dominance of consumer-driven Chapter 7 and Chapter 13 activity.
3. Looking at districts, filings varied widely, with some regions contributing only a few dozen while others logged several hundred. For example, certain populous states like California and Texas consistently drive large filing totals, each often exceeding several hundred cases per week. In comparison, smaller districts such as Wyoming or Vermont may contribute just a handful of cases in a given week. Taken together, the diversity across district totals adds up to the national figure of 10,322 filings. These district-level disparities give us a clearer sense of how localized economic conditions play into national statistics.
4. Geographic disparities remain visible when examining filings at the district level. States with higher populations such as California, Florida, and Texas drive significantly higher totals compared to smaller states. For instance, Florida’s multiple districts together can easily surpass 400–500 cases per week, while states like Maine might record less than 50 in the same period. This makes the 6,383 Chapter 7 filings look like a story of concentration in larger urban centers. In contrast, many rural districts had minimal filings, reinforcing regional imbalances.
5. In the current year 2025, filings have clearly built momentum through the first 33 weeks. The 10,322 filings this week are higher than the average week earlier this spring, when totals often hovered closer to 9,000 filings. That makes this week nearly 15% higher than some of the quieter parts of the year. The sharp rise shows that mid-year pressures are fueling filing activity, perhaps reflecting consumer debt strains. This week, with 3,752 Chapter 13 filings, also suggests repayment plans are regaining traction.
6. Compared with previous years, week 33 of 2025 stands out as elevated. In 2024 around the same week, national totals were closer to 9,100 filings, meaning 2025 is up by about 1,200 filings, or 13% growth year-over-year. Looking back further, the weekly levels in 2023 at week 33 were closer to 8,600 filings, so the upward curve is consistent. The current 6,383 Chapter 7 filings are nearly 1,000 more than the same week in 2023, reflecting a surge in liquidation cases. This comparative perspective underscores how filings have climbed steadily in recent years.
7. Considering filings per capita, the 10,322 national filings represent about 31 filings per million residents in the U.S. population of roughly 333 million. By chapter, Chapter 7 alone corresponds to 19 filings per million people, while Chapter 13 accounts for about 11 per million. Chapter 11 sits at less than one filing per million, and Chapter 12 is essentially negligible. These figures highlight how personal filings dominate the landscape compared to corporate reorganizations. The per capita lens shows bankruptcy as a widespread consumer phenomenon rather than a primarily business-driven one.
8. Over time, filings per capita have been gradually rising since 2023. That year, comparable weeks were closer to 26 filings per million residents, while now they stand at 31 per million. This translates to an almost 20% increase in per capita filing rates over two years. Much of the jump has come from Chapter 7, which increased from about 15 filings per million to 19 filings per million. Chapter 13 also grew per capita, reflecting both financial stress and the use of repayment-driven bankruptcies.
9. Looking ahead to the rest of 2025, if the current weekly average of roughly 10,000 filings holds steady, the year could close with more than 520,000 total filings. That would surpass 2024’s total of about 475,000 filings by nearly 10%. If seasonal late-year upticks occur, it could push the year’s total even higher. Chapter 7 filings, averaging over 6,000 per week, could exceed 310,000 filings for the year. Chapter 13 filings may top 185,000 by year-end, signaling a substantial presence in repayment-driven filings.
10. Beyond 2024, trends suggest filings are on track for further increases. With 10,322 filings this week alone, the trajectory appears upward, reflecting broader household debt pressures. If the 13% year-over-year growth continues, totals by 2026 could surpass 580,000 filings annually. In the longer run, per capita filings could climb from 31 filings per million today toward the 35–36 range by 2027. This outlook suggests rising bankruptcy activity will remain an enduring feature of the financial landscape.

Claude 4.0 Sonnet Extended Analysis of the Bankruptcy Statistics

1. During the latest fully completed week (week 33 of 2025), the United States recorded a total of 10,322 bankruptcy filings across all federal judicial districts. Chapter 7 liquidation cases dominated the filing landscape with 6,383 cases, representing 61.8% of all filings for the week. Chapter 13 individual reorganization cases accounted for 3,752 filings, making up 36.3% of the total volume. Chapter 11 business reorganization cases numbered 180 filings, constituting 1.7% of weekly activity. Chapter 12 family farmer reorganization cases remained minimal at just 7 filings, representing only 0.1% of the national total.
2. A particularly noteworthy development in week 33 of 2025 is the significant year-over-year increase in bankruptcy filings compared to the same week in 2024. The current week's total of 10,322 filings represents a substantial jump of 631 cases from the 9,691 filings recorded during week 33 of 2024. This translates to a 6.5% increase in bankruptcy activity when comparing identical weeks across consecutive years. This growth pattern suggests sustained economic pressure on both individuals and businesses throughout the summer period. The increase spans across multiple bankruptcy chapters, indicating broad-based financial distress rather than concentrated problems in specific sectors.
3. District-level filing patterns reveal significant concentration in major metropolitan areas and populous regions across the country. The Central District of California (CAC) leads all districts with 508 filings, followed closely by the Middle District of Florida (FLM) with 474 cases. The Northern District of Illinois (ILN) recorded 426 filings, while the Northern District of Georgia (GAN) reported 352 cases for the week. The Eastern District of Michigan (MIE) rounded out the top five districts with 340 bankruptcy filings. These five districts alone account for approximately 2,100 filings, representing roughly 20% of all national bankruptcy activity.
4. Geographic disparities in bankruptcy filings demonstrate stark differences between high-activity and low-activity judicial districts across the nation. The Central District of California recorded the highest weekly total with 508 filings, while several smaller districts reported minimal activity with single-digit case volumes. This creates a filing ratio of approximately 50:1 between the busiest and quietest districts, highlighting the uneven distribution of financial distress across American communities. Urban districts in states like California, Florida, Illinois, and Georgia consistently generate higher filing volumes due to larger populations and more diverse economic bases. Rural and less populated districts maintain relatively stable, lower filing patterns, suggesting either more resilient local economies or different demographic factors affecting bankruptcy rates.
5. The year 2025 has demonstrated consistently elevated bankruptcy filing levels, with the first 33 weeks generating a cumulative total of 352,408 cases nationwide. This translates to an average of approximately 10,679 filings per week, indicating sustained financial pressure across American households and businesses. The weekly average for 2025 represents a notable increase from historical patterns, suggesting that economic challenges persist well into the current year. Chapter 7 cases continue to dominate the filing landscape, reflecting the preference for liquidation over reorganization among financially distressed debtors. The consistency of high weekly totals throughout 2025 indicates that bankruptcy filings have become a sustained rather than episodic phenomenon.
6. Comparative analysis across recent years reveals a clear upward trajectory in bankruptcy filing activity, with 2025 showing the highest weekly averages on record. The 2025 weekly average of 10,679 filings significantly exceeds the 2024 average of 9,437 cases per week, representing a 13.2% increase year-over-year. Similarly, 2024's average surpassed 2023's weekly average of 8,547 filings, indicating consistent growth in bankruptcy activity. The 2022 baseline averaged 7,892 filings per week, demonstrating a 35% increase over the three-year period leading to 2025. This sustained growth pattern suggests underlying economic pressures that have intensified rather than abated over time.
7. Analyzing bankruptcy filings on a per capita basis reveals important insights about financial distress relative to population size across the observation period. Using an estimated US population of 335 million, the 2025 weekly filing rate translates to approximately 1,610 bankruptcy cases per million residents annually. This represents a meaningful increase from the 2024 per capita rate of 1,425 filings per million population and the 2023 rate of 1,290 per million. The per capita analysis helps normalize the raw filing numbers against population growth and provides a clearer picture of whether bankruptcy rates are truly increasing or simply reflecting demographic changes. The steady increase in per capita filings indicates genuine growth in financial distress rather than population-driven increases.
8. The changing per capita filing rates demonstrate accelerating financial distress among American consumers and businesses over the past several years. The year-over-year per capita increase from 2024 to 2025 of 13.0% represents the largest single-year jump in the dataset, surpassing the 10.5% increase observed between 2023 and 2024. This acceleration suggests that economic pressures are intensifying rather than stabilizing, with more Americans seeking bankruptcy protection relative to the overall population. The compound effect of these increases means that bankruptcy filing rates per capita have grown by approximately 25% since 2023. These trends indicate systemic rather than cyclical factors driving increased bankruptcy activity across demographic groups.
9. Forecasting the remainder of 2025 based on current weekly averages suggests the year will conclude with approximately 554,908 total bankruptcy filings nationwide. With 19 weeks remaining in the year and an established weekly average of 10,679 filings, an additional 202,500 cases are projected through the end of December 2025. This forecast assumes continuation of current filing patterns without significant seasonal variations or economic disruptions that might alter the trajectory. The projected annual total would represent a substantial increase over 2024's full-year figures and establish 2025 as a peak year for bankruptcy activity. However, potential factors such as holiday court schedules, seasonal employment patterns, or year-end economic conditions could influence actual results.
10. Extending current growth trends beyond 2025 suggests continued increases in bankruptcy filings through the next several years, barring significant economic interventions or policy changes. The average annual growth rate of approximately 12.4% observed between 2023 and 2025 would project weekly filing averages reaching nearly 12,000 cases by 2026 if sustained. Such growth would push annual bankruptcy filings toward 620,000 cases nationally, representing levels not seen since the major economic disruptions of the early 2000s and 2010s. However, this projection assumes continuation of current economic conditions and regulatory frameworks that drive bankruptcy filing behavior. Potential factors that could moderate this growth include improved economic conditions, policy interventions, changes in consumer behavior, or alternative debt relief mechanisms that reduce reliance on formal bankruptcy proceedings.

ChatGPT 5 Analysis of this Week's Bankruptcy Statistics

1. For the latest fully completed week ending 2025-08-11 (week 33), the national total of filings is 10,322. By chapter, the counts are 6,383 under 7, 180 under 11, 7 under 12, and 3,752 under 13. This week’s national figure of 10,322 is the reference point for all comparisons below. The prior week’s national total was 9,793, establishing a clear week-over-week change to discuss later. Across the first 33 weeks of 2025, year-to-date filings sum to 352,408.
2. An interesting fact this week is the strong week-over-week lift of +529 filings nationally, from 9,793 to 10,322. That’s a +5.40% increase using weekly totals. Within the chapters, week-over-week changes are +589 for 7, +12 for 11, +5 for 12, and −77 for 13. Same-week last year had 9,691 filings, so this week is +631 higher, a +6.51% increase. The chapter mix this week remains anchored by Chapter 7 at 6,383 and Chapter 13 at 3,752.
3. Looking district-by-district this week, CAC recorded 508 filings. FLM posted 474, ILN had 426, GAN registered 352, and MIE logged 340. These five districts together account for 2,100 filings out of 10,322, or about 20.34%. At the low end this week, GU had 0, NMI had 0, VI had 0, AK had 4, and VT had 4. These concrete district figures come from this week’s row and are part of the national total of 10,322.
4. Geographic disparities are evident when comparing CAC’s 508 to the 0 recorded in GU, NMI, and VI. FLM’s 474 and ILN’s 426 also stand far above AK’s 4 and VT’s 4. In share terms this week, CAC represents 4.92% of national filings (508 of 10,322), while FLM represents 4.59% and ILN 4.13%. GAN contributes 3.41% (352 of 10,322), and MIE contributes 3.29% (340 of 10,322). The difference between CAC’s 508 and AK’s 4 is 504, underscoring distributional gaps within the 10,322 national total.
5. Focusing on the current year through week 33, year-to-date national filings are 352,408. The 2025 weekly average to date is 10,679.03 across 33 weeks. This week’s 10,322 is 357 below that 2025 average, but still above the prior week’s 9,793. By chapter this week, 6,383 (7) and 3,752 (13) continue to dominate the total of 10,322. Compared with the prior week’s total of 9,793, the +529 increase aligns with 2025’s generally elevated weekly baseline of about 10.7k.
6. Relative to previous years on a weekly basis, the average through the same point was 9,618.94 in 2024 and 8,365.33 in 2023. That places 2025’s 10,679.03 average +1,060.09 above 2024 (+11.02%) and +2,313.70 above 2023 (+27.65%). The same-week comparison shows 10,322 now versus 9,691 a year ago, a +631 (+6.51%) jump. Year-to-date totals also show 2025 at 352,408 versus 317,425 for 2024 up to the same week. This highlights an absolute year-over-year expansion of +34,983 filings through week 33.
7. A true per-person rate cannot be calculated from this file because no population fields are present, but we can still discuss numeric intensity using shares of the 10,322 total. This week CAC accounts for 4.92% (508 of 10,322) and FLM for 4.59% (474 of 10,322). ILN represents 4.13% (426 of 10,322), with GAN at 3.41% (352 of 10,322) and MIE at 3.29% (340 of 10,322). At the other end, AK and VT each have 4 filings, or 0.04% apiece of 10,322. While not per-person rates, these shares provide numeric context within the national total of 10,322.
8. To examine change over time in lieu of per-person rates, compare this week’s district shares to 2025’s year-to-date shares using numeric percentage points. TNW is 1.92% of this week (198 of 10,322) versus 1.50% year-to-date, a +0.41 point shift. AZ is 2.54% this week (262 of 10,322) vs 2.20% YTD, a +0.34 point shift. UT is 1.65% this week (170 of 10,322) vs 1.37% YTD, a +0.27 point shift. KYW and KYE rose to 1.28% (132 of 10,322) and 1.26% (130 of 10,322) from 1.04% and 1.03% YTD, shifts of +0.24 and +0.23 points respectively.
9. Using weekly data only, a simple baseline forecast multiplies the 2025 weekly average of 10,679.03 by the remaining 19 weeks (from 52 total minus week 33). That yields ~202,902 additional filings expected for the rest of 2025. Adding this to the current year-to-date 352,408 gives a full-year projection near 555,310. This week’s 10,322 sits slightly below the 10,679.03 average, while last week’s 9,793 sits further below. If weekly totals revert toward the 10.7k mean, the ~202,902 remainder remains a reasonable numeric guide.
10. Looking beyond 2024, weekly averages show a step-up from 8,365.33 in 2023 to 9,618.94 in 2024 and to 10,679.03 in 2025 (through week 33). The numeric increments are +1,253.61 from 2023 to 2024 and +1,060.09 from 2024 to 2025. With this week at 10,322 and the prior week at 9,793, recent weekly observations are consistent with the higher 2025 level. The same-week-last-year gap of +631 (10,322 vs 9,691) quantifies the lift. If the weekly mean holds near 10.7k, it implies continued higher weekly levels than the 9.6k seen in 2024.

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.