Summary
In 2025, the number of companies and people filing for bankruptcy in the U.S. increased by 11% to 565,759. This rise in bankruptcies is linked to difficult economic conditions, including high debt, a slow job market, and rising prices. Experts suggest that these financial pressures are unlikely to ease soon.
Key Facts
- Bankruptcy filings in the U.S. rose by 11% to 565,759 in 2025.
- Businesses and consumers sought Chapter 11 protection due to financial distress.
- Consumer bankruptcy filings, mostly Chapter 7 and Chapter 13, made up the majority of cases.
- Consumer Chapter 7 filings increased by 15%, while Chapter 13 filings went up by 6%.
- Commercial bankruptcy filings rose by 5% to 31,810 in 2025.
- A large number of bankruptcy cases came from companies like Spirit Airlines and Claire's.
- High borrowing costs, ongoing tariff policies, and inflation contributed to financial struggles.
- Experts expect high bankruptcy filings to continue into 2026 due to persistent economic challenges.
