Bankruptcy Filings Climb Again as Consumer and Business Financial Strain Grows

Bankruptcy filings are continuing their steady climb, sending a clear signal to creditors that financial strain among both consumers and businesses is intensifying. New data from the Administrative Office of the U.S. Courts and Epiq AACER shows that filings rose sharply through the end of 2025 and into January 2026, narrowing the gap between today’s volumes and pre pandemic levels.

The big picture

• Total bankruptcy filings rose 11% in the twelve month period ending December 31, 2025, reaching 574,314 cases.
• Non business filings increased 11.2% year over year, a meaningful indicator of mounting household financial stress.
• Business filings also climbed, up 7.1% year over year.
• January 2026 filings continued the trend, with total bankruptcies up 10% compared with January 2025.

While overall volumes remain far below the peak levels seen in the years following the financial crisis, the direction of travel is clear. After hitting a low point in mid 2022, bankruptcy filings have risen quarter after quarter, reflecting a slow but persistent normalization as pandemic era relief programs fade and cost pressures accumulate.

What stands out in the data

Several details in the most recent figures are particularly relevant for credit and collection professionals:

• Commercial chapter 11 filings jumped 76% year over year in January 2026, driven in part by large corporate families filing related cases.
• Small business subchapter V elections rose 68%, highlighting stress in the lower middle market.
• Individual chapter 7 filings increased 13% year over year in January, suggesting more consumers are reaching the point where liquidation feels like the only viable option.
• Chapter 13 filings also rose, indicating that a growing number of consumers are seeking structured repayment plans rather than full liquidation.

“The significant spike in commercial chapter 11 filings this month reflects the outsized impact that related filings from large corporate families can have on the overall landscape,” said Michael Hunter, vice president of Epiq AACER, in a statement

. “Individual filings also continue to show strong increases. With volumes steadily moving back toward pre pandemic levels, it’s clear that financial strain among those seeking bankruptcy protection is broad based across both businesses and consumers.”