More Americans are filing for bankruptcy. Here's what's behind the surge.

January 16, 2026

TL;DR

Total U.S. consumer bankruptcy filings rose 12% from 2024 to 2025.
Economic pressures including inflation, high borrowing costs, rising medical insurance, credit card debt, and student loan repayments are contributing to the increase.
Commercial bankruptcy filings are up 5% from 2024 to 2025.
Chapter 11 bankruptcies increased 1% from 2024 to 2025, influenced by higher interest rates and inflation.
Experts suggest the current rise in bankruptcies represents a return to pre-pandemic levels after a dip during COVID-19 due to government funding and forbearance plans.
Filings are expected to continue rising through 2025 and into the following year.

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