Bankruptcy filings continue to rise, increasing 11.5% year-over-year for the 12-month period ending June 30, according to newly released data from the Administrative Office of the U.S. Courts. A total of 542,529 cases were filed, up from 486,613 during the same period last year.
- Non-business filings: Up 11.8% to 519,486
- Business filings: Up 4.5% to 23,043
This marks the ninth consecutive quarter of increased filings, reflecting sustained financial pressure on consumers and small businesses alike.
📊 Why it matters: For professionals in the credit and collection industry, this sustained uptick, while still below historical highs, signals rising financial distress. The post-pandemic lull in filings officially appears to be over.
- Bankruptcy filings peaked at nearly 1.6 million in 2010 following the Great Recession.
- They hit a 15-year low of 380,634 in June 2022, but have increased steadily each quarter since.
🧩 By chapter (June 2025):
- Chapter 7: 333,321 filings (up 17% from 2024)
- Chapter 11: 8,408 filings (down 3.5% from 8,717)
- Subchapter V (within Chapter 11): Continued growth in prior months, reflecting small business distress
- Chapter 13: 200,290 filings (up from 192,421)
📍 Geographic insights:
- The Ninth Circuit (Western states) saw the largest increase; filings rose 15.5%, with California and Arizona leading the way.
- Fifth Circuit (Texas, Louisiana, Mississippi) followed with a 14.7% increase.
- The Tenth Circuit (Rocky Mountain states) was close behind at 13.8%.
💬 What they’re saying: ABI Executive Director Amy Quackenboss recently noted that “elevated prices, higher borrowing costs and uncertain geopolitical events compound the economic challenges faced by families and businesses,” reinforcing the need for Congress to revisit bankruptcy thresholds.
📌 The bottom line:
