In 2025, the landscape of consumer bankruptcy filings has taken a turn, registering a notable 23.5% increase year-to-date compared to 2024. This escalation can be attributed to several economic pressures, including persistent inflation, rising interest rates, and a growing reliance on credit among consumers. The data reveals that the overall number of bankruptcy filings has reached 86,739 across all chapters so far this year, with Chapter 7 liquidations accounting for a substantial 59.66% of these cases—amounting to 51,750 filings. Meanwhile, Chapter 13 filings, which involve repayment plans, have also risen, reflecting a broader trend of individuals seeking structured ways to manage their debts.
Analyzing monthly statistics further highlights the challenges consumers are facing in 2025. January saw a 13% spike in filings, with 41,492 reported compared to 36,629 in January 2024. February followed suit, showing a 3% increase from the previous year, with total filings reaching 40,260. This consistent upward trend in bankruptcy filings underscores a critical economic reality: more individuals are turning to bankruptcy protection as a means to cope with their financial burdens. As the year progresses, the implications of these figures will likely continue to ripple through the economy, raising concerns about consumer stability and the overall health of financial markets.
Statistic were resourced by:
Bankruptcy Filings Surge: A 23.5% Increase in 2025 Amid Economic Pressures
Bankruptcy Watch