Summary
In 2025, there has been a sharp increase in personal bankruptcy filings in the U.S., which indicates rising financial stress among people. Household debt is growing, and many Americans are worried about their economic future due to high inflation and a weaker job market.
Key Facts
- Personal bankruptcy filings in the U.S. increased by 15% in the first nine months of 2025 compared to the same period in 2024.
- Chapter 7 bankruptcy filings, the most common type, rose to 249,152 in this period.
- Total bankruptcy filings increased by 10% to 423,053 year-over-year.
- Chapter 13 filings, which help reorganize debt, went up by 4.3% to 149,337.
- Rising household debt and inflation are key factors contributing to more bankruptcies.
- Earlier reports by the U.S. Courts also noted a similar increase in nonbusiness bankruptcy filings.
- Some financial protections from the COVID-19 period, like paused student loans, have been rolled back, adding pressure.
- Economic surveys show declining consumer confidence and increased pessimism about the future.
