US Bankruptcy Filings Surge

By Hugh Cameron

U.S. News Reporter

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U.S. bankruptcy filings are on the rise in the second half of 2025, signaling mounting financial pressures on both households and businesses.

According to the latest quarterly report from the Administrative Office of the U.S. Courts, bankruptcy filings rose 10.6 percent in the 12 months that ended September 30 compared to the previous year. Business filings ticked up 5.6 percent, while nonbusiness filings soared 10.8 percent, with the combined total of 557,376 marking the highest tally for the yearlong stretch since 2020.

Why It Matters

The surge in filings over the past few years has been charted by several organizations, and while the figures remain below historical highs, some view this as a sign of the greater financial strains affecting American consumers and companies in 2025.

The issue has been highlighted by the handful of large, well-known firms that have sought bankruptcy protection this year. These include Spirit Airlines, the jewelry retailer Claire's and First Brands, the auto parts company whose collapse has raised significant concerns about risky lending practices in the U.S.

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What To Know

The report noted that total filings declined steadily following the financial crash, dropping from a high of almost 1.6 million in the year ending September 2010 to 380,634 in the June 2022 report.

Since then, however, filings have ticked up—first with a spike in 2020 and the more recent increase to the current 12-month total of 557,376.

A separate report from the American Bankruptcy Institute (ABI), citing data from the court data platform Epiq AACER, showed that total bankruptcy filings rose to 53,019 in October—up 12 percent year over year.

Commercial filings jumped 7 percent while individual filings registered a 13 percent increase, which ABI attributed to the financial pressures facing both Americans and U.S. businesses in the second half of the year.

S&P data released in mid-November, cited by Business Insider, showed that large corporate bankruptcies were closing in on a 15-year high in 2025. S&P Global Market Intelligence recorded 68 filings in October, bringing the total for 2025 to 655. This compares to 2024's full-year count of 687 and already exceeds the figures for each year since 2010, when filings reached 828.

What People Are Saying

Amy Quackenboss, the executive director of the American Bankruptcy Institute, said in a statement: "Persistent economic headwinds—including higher prices, tighter lending conditions, and ongoing geopolitical uncertainty—continue to weigh on financially distressed consumers and businesses. Bankruptcy remains an indispensable tool to help debt-burdened families and businesses achieve a financial fresh start."

What Happens Next

According to Michael Hunter, the vice president of Epiq AACER, many of the headwinds that have driven filings in 2025 are expected to persist into next year.

He said in ABI's report, "Higher interest rates, increased costs, and overall household debt levels all indicate a continued demand for both consumers and businesses to seek bankruptcy protection."

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