Summary
Bankruptcy filings in the United States have increased significantly in 2025, with both household and business filings rising. The number of total filings reached the highest annual count since 2020, due to financial pressures like higher prices and tighter lending. Notable company bankruptcies this year include Spirit Airlines and Claire's.
Key Facts
- U.S. bankruptcy filings increased by 10.6% in the 12 months ending September 30, 2025.
- Business bankruptcies rose by 5.6%, and non-business filings climbed by 10.8%.
- Total filings for the year reached 557,376, the highest since 2020.
- Large corporate bankruptcies in 2025 are nearing a 15-year high, with 655 filings reported so far.
- Higher prices, stricter lending conditions, and geopolitical uncertainties contribute to the financial strain on consumers and businesses.
- The American Bankruptcy Institute noted a 12% rise in total filings for October 2025 compared to the same month the previous year.
- Experts expect financial challenges like high interest rates to continue pushing bankruptcy rates up in the coming year.
