Summary
Bankruptcies in the U.S. have increased significantly in 2026 due to economic challenges such as high inflation and consumer debt. Data shows a 14% rise in bankruptcy filings in the first quarter, affecting both businesses and individuals.
Key Facts
- Bankruptcy filings in the U.S. rose 14% in the first quarter of 2026 compared to 2025.
- There were 150,009 filings in 2026's first quarter, up from 132,094 in the same period the previous year.
- Consumer filings reached 131,573, while commercial filings totaled 8,436.
- Chapter 7 consumer bankruptcies increased 17% to 89,259 cases.
- Chapter 13 filings, allowing debt reorganization, rose 8% to 51,962 cases.
- Subchapter V filings, for small businesses, increased 67% to 833 cases.
- Factors such as inflation, high interest rates, and tariffs have contributed to the rise in personal bankruptcies.
- ABI supports congressional efforts to make bankruptcy options more accessible, including raising the threshold for small business reorganization.
