Bankruptcy filings in the United States reached 469,719 in the first nine months of 2026. That marks an 11 percent increase from 423,168 in the same period of 2025, according to Epiq AACER data released by the American Bankruptcy Institute on October 8.
Individuals and families accounted for the bulk of the cases. They filed 444,252 bankruptcies. Businesses filed 25,467, up 7 percent from the prior year.
Among individual cases, Chapter 7 filings rose 13 percent to 282,413. Chapter 7 is the process that typically wipes out many unsecured debts such as credit cards after a short court review, though it can mean losing non-exempt assets. Chapter 13 filings, which set up a three-to-five-year repayment plan so filers can keep a home or car, rose 8 percent to 160,817.
Small businesses turned more often to Subchapter V of Chapter 11. Those streamlined reorganizations jumped 46 percent to 2,442. Subchapter V is designed for smaller companies. It moves faster and costs less than a full Chapter 11, letting owners propose a plan to restructure debts while continuing operations in many cases.
Michael Hunter, vice president at Epiq AACER, said the continued increase reflects the strain of higher borrowing costs, rising household expenses, growing consumer delinquencies, and a softer job market.
Credit card rates have stayed above 20 percent for more than three years. Average rates on 30-year fixed mortgages recently reached their highest levels in roughly three years. Twelve-month inflation stood at 3.4 percent in August, down from a peak earlier in the year but still elevated. The job market added fewer positions than expected in September. New delinquencies on credit cards and auto loans remain elevated, according to the New York Fed.
Personal bankruptcy filings have climbed nearly 50 percent since the low in 2022, when pandemic stimulus and support programs held numbers near historic lows. LendingTree analysis put the 2025 total for personal cases at 549,577, or roughly 1,400 people a day. Most recent growth has come in Chapter 7 liquidations rather than repayment plans.
Large companies faced pressure as well. Cornerstone Research counted 100 large corporate bankruptcies between July 2025 and June 2026, 22 percent above the 2005–2025 average. Twenty-eight involved assets exceeding $1 billion. High interest rates, regulatory uncertainty, shifting demand, and competitive pressures in sectors such as manufacturing were frequently cited.
Amy Quackenboss, executive director of the American Bankruptcy Institute, said the rise, especially among small businesses, highlights challenges from persistent inflationary pressures, elevated borrowing costs, and economic uncertainty. She noted that Congress passed the Bankruptcy Threshold Adjustment Act. The measure permanently raises the Subchapter V debt limit to $7.5 million from roughly $3.4 million and sets a single $2.75 million limit for Chapter 13. The higher thresholds apply to cases filed after the president signs the bill.
Total filings remain far below the peaks of more than 1.5 million a year after the 2008 crisis. They have risen steadily since the 2022 low, however. Epiq AACER expects volumes to keep climbing into 2027 as cost pressures mount.
Some measures of business activity showed strength. S&P Global reported that growth accelerated for a fourth straight month in September, with manufacturing new orders at the highest level since April 2022. That has not reversed the upward trend in court filings from households and smaller firms.
Accounts on X tracked the data. One noted the 11 percent rise in total filings amid discussion of household financial strain. Others highlighted the sharp jump in Subchapter V cases and the pending increase in the small-business debt limit.
The numbers come from Epiq AACER, the American Bankruptcy Institute, U.S. Courts statistics, Cornerstone Research, and LendingTree.
—- The Whatfinger News Team: Luke and Sgt K, with Grok on edits and graphics
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