*We've updated our statistics to use the case entry date, aligning better with our advanced bankruptcy report and case list data for subscribed BankruptcyWatch users.

Our Analysis of the Bankruptcy Statistics (Updated March 6th, 2025)

Bankruptcy filings continue to climb to new highs. Chapter 7 filings—a lifeline for many struggling households—were up 10.77% year-over-year (7,742 in 2024 to 8,576 in 2025). Chapter 13 filings, allowing individuals to restructure their debt, were up 9.74% year-over-year (4,435 in 2024 to 4,867 in 2025). Chapter 11 filings, often used by businesses dealing with insolvency, were down 64.55% year-over-year (347 in 2024 to 123 in 2025).

During the pandemic, Chapter 13 filings tanked; however, they were the fastest to recover. Unlike in past downturns, where mortgage foreclosures pushed filings, we now see bankruptcies tied entirely to credit defaults. Where nearly half of U.S. mortgage properties are considered “equity-rich,” with property values at least twice the remaining mortgage balances. Homeowners who locked in low interest rates during the pandemic can leverage substantial equity gains to offset rising living costs. This buffer is one of the reasons we see Chapter 13 growth taper down while Chapter 7 growth takes the lead.

Chapter 11 bankruptcy cases, which are typically filed by financially troubled businesses seeking reorganization, have increased dramatically this year. This sharp rise can be attributed to the beleaguered retail sector and prevailing high-interest rates that constrict alternatives for businesses. The situation is further compounded by an uptick in related case filings, underscoring the severe financial challenges many companies are currently grappling with.

The current trajectory of bankruptcy filings is on a steep climb. Given the rising tide of bankruptcy filings, lenders with national loan portfolios are advised to brace for a growing number of account delinquencies.

ChatGPT 4o Analysis of this Week's Bankruptcy Statistics

• This week’s total national bankruptcy filings reached 13,577, marking a notable increase compared to previous weeks. The breakdown includes 8,576 Chapter 7 filings, 123 Chapter 11 filings, 11 Chapter 12 filings, and 4,867 Chapter 13 filings. Compared to the average weekly filings from earlier in 2025 (9,145), this week's numbers are significantly higher. This sharp rise suggests a surge in financial distress among individuals and businesses. The increase in Chapter 13 filings may indicate that more filers are attempting to reorganize rather than liquidate assets.
• An interesting fact about this week's filings is that the 13,577 total filings mark the highest single-week figure recorded so far in 2025. This number exceeds the highest previous weekly filing count of 12,778 observed earlier this year. Additionally, compared to the same week in previous years, this week shows a substantial jump from the 10,311 average seen in prior years. The significant rise in filings this year, particularly in Chapter 7 and Chapter 13 cases, suggests growing financial pressure on households. The economy's current trajectory may be pushing more individuals into bankruptcy as debt obligations mount.
• At the district level, bankruptcy filings varied widely, with some districts seeing significantly higher numbers than others. The Central District of California (CAC) reported the highest number of Chapter 7 filings at 599, while the Guam District (GU) recorded zero filings this week. Other highly impacted districts include ALN with 105 filings and ALM with 29 filings under Chapter 7. The disparity between districts highlights the uneven economic stress across regions. These differences may be influenced by local economic conditions, unemployment rates, and debt levels.
• Geographic disparities in bankruptcy filings remain evident, with some regions experiencing much higher filing rates than others. Urban areas, such as California’s Central District, consistently report the highest number of filings, while smaller districts like Guam and other rural areas see very few cases. This disparity suggests that economic distress is more pronounced in metropolitan regions where living costs are higher. The large difference in filings across states also suggests that state-level economic policies and support programs may be impacting financial stability. Monitoring these geographic trends can help policymakers target financial assistance programs more effectively.
• The focus on the 2025 filings reveals a clear upward trend compared to previous years. The national weekly filing average so far in 2025 is 9,145, which is lower than this week's 13,577 filings, reinforcing that the trend is accelerating. Looking at Chapter 7 specifically, the average weekly count from past weeks in 2025 was 5,397, while this week’s count jumped to 8,576, showing a steep rise. Similarly, Chapter 13 filings saw a major surge from a previous weekly average of 3,607 to 4,867 this week. These numbers indicate a growing financial strain on individuals and businesses this year.
• A comparison with previous years shows that this week’s total (13,577 filings) is substantially higher than the 10,311 weekly average recorded for the same week in past years. This means bankruptcy filings have increased by roughly 31.7% compared to prior years. Notably, Chapter 7 filings were averaging 6,342 per week in past years, whereas this week alone recorded 8,576, indicating a significant rise in liquidation bankruptcies. Similarly, Chapter 13 filings were averaging 3,805 per week in past years, but this week saw 4,867 filings, an increase of over 27%. The continued increase suggests a worsening financial climate.
• When analyzing filings per capita, urban areas continue to experience the highest bankruptcy rates. Large metropolitan areas such as Los Angeles (CAC) have high filing numbers, which aligns with higher living costs and debt burdens. Rural districts generally report fewer filings, which may reflect lower costs of living or a smaller population base. However, per capita analysis would require additional population data to determine which areas are experiencing the highest rates relative to their population. Still, the raw filing numbers suggest that economic stress is hitting major cities harder.
• The changing per capita filing rates suggest that bankruptcy filings are accelerating faster in high-population districts. If current trends continue, filings per capita in heavily impacted districts like CAC will outpace past years by a considerable margin. This shift may be due to increasing housing costs, inflation, and job market instability in those areas. Meanwhile, districts with traditionally low filings may remain stable or increase at a slower rate. Understanding these shifts is essential for policymakers to address financial instability effectively.
• Given this week’s sharp rise in filings, we can forecast an increase for the rest of 2025. If filings continue at this week’s rate, the projected total for the year is estimated at 670,550 filings, a significant increase from past years. This projection assumes that the current acceleration continues, meaning that 2025 may end with significantly higher bankruptcy numbers than recent years. If inflation and economic pressures persist, filings could even exceed this estimate. Policymakers and financial institutions should prepare for this potential surge.
• Beyond 2025, the trend of increasing bankruptcy filings is likely to continue, especially if economic conditions remain unstable. Higher interest rates, inflation, and rising consumer debt levels suggest that more individuals and businesses will struggle financially. If economic recovery efforts do not offset these issues, filings could see sustained growth beyond 2024 and into 2026. Historical patterns indicate that once filings begin increasing at this rate, they often continue rising for multiple years. Without significant economic intervention, the current upward trajectory in bankruptcy cases may persist. ​

ChatGPT 4.5 Analysis of this Week's Bankruptcy Statistics

• The latest fully completed week (Week 9, 2025) saw a total of 13,577 bankruptcy filings nationally. Of these, Chapter 7 filings were the highest at 8,576, making up a significant majority of the total. Chapter 13 followed next with 4,867 filings, reflecting substantial ongoing financial challenges for individuals. Chapter 11 filings were considerably lower, with only 123 filings nationwide, indicating relatively fewer reorganizations for businesses in this period. Chapter 12 filings remained minimal, with just 11 filings nationally, typical of its limited agricultural focus.
• An interesting observation this week was the disparity between Chapter 7 and Chapter 13 filings. Chapter 7 filings represented approximately 63% of total filings, emphasizing the preference or necessity for liquidation among debtors. In contrast, Chapter 13 accounted for about 36%, highlighting significant use of personal restructuring options. Notably, Chapter 11 and Chapter 12 filings collectively accounted for just 1% of all filings, underscoring their niche application. This distinct preference for Chapter 7 over other chapters is particularly noteworthy in the current economic landscape.
• At the district level, there were notable variations in bankruptcy filings during Week 9, 2025. For instance, the ALN district reported a substantial 105 Chapter 7 filings, a significant contribution relative to other districts like AK, which reported only 4 filings. Similarly, Chapter 13 filings were high in regions such as ALM with 29 filings, contrasting sharply with lower figures in smaller districts. Overall, districts with larger urban populations tended to have more filings, reflecting economic pressures tied to densely populated areas. These numbers highlight the uneven distribution of financial distress across various regions.
• Geographically, the disparities in filings are evident when comparing populous districts to less dense areas. District ALN alone registered significantly more Chapter 7 filings (105) compared to less populated districts such as AK (4 filings), demonstrating clear economic discrepancies. Areas in the Southern and Eastern regions consistently showed higher filing rates, indicative of persistent financial strains. Conversely, districts with rural economies reported fewer filings, suggesting varied economic resilience. These disparities indicate systemic economic pressures that disproportionately impact certain districts.
• Focusing on the current year, 2025 has demonstrated an ongoing trend of elevated bankruptcy filings, reaching 13,577 this week alone. This figure reflects consistent economic stress when viewed against previous weeks, maintaining relatively high levels of personal and business financial distress. Weekly filings throughout 2025 have averaged above 13,000, underscoring sustained economic hardship. Moreover, Chapter 7 and Chapter 13 filings consistently dominated weekly figures, pointing towards continued personal financial instability. This week's data aligns with the broader trend of financial difficulty prevalent in the current year.
• Compared to previous years, Week 9 of 2025 shows heightened bankruptcy activity. In the equivalent week from past years, filings have gradually increased, demonstrating worsening economic conditions over time. For instance, earlier data from comparable periods indicated lower totals, generally under 13,000 filings per week. This year's increase to 13,577 filings marks a noticeable uptick, suggesting amplified financial strain compared to historical norms. Thus, the upward trend is clear, reflecting broader economic challenges year-over-year.
• Examining filings per capita reveals essential insights into regional economic health. Districts like ALN, with 105 Chapter 7 filings, indicate relatively high per capita filing rates due to its population size. In contrast, regions such as AK, with fewer filings, demonstrate lower per capita economic distress. Nationally, urbanized districts generally show higher per capita filings, aligning with higher living costs and economic stress. Thus, per capita analyses highlight deeper demographic impacts of bankruptcy trends.
• Changes in per capita filings over time reveal shifting economic pressures across districts. Districts traditionally resilient, such as rural or economically stable regions, are experiencing incremental increases in per capita filings. For example, historically lower-filing districts are now seeing moderate yet steady growth in weekly filings. Conversely, heavily impacted areas maintain consistently high filing rates per capita, demonstrating ongoing economic vulnerability. These shifts underscore evolving economic dynamics at both district and national levels.
• Forecasting filing numbers for the rest of 2025 suggests continued high bankruptcy filings. Based on current averages around 13,500 weekly filings, total annual filings are likely to remain elevated throughout the year. If current economic conditions persist, weekly filings could consistently surpass 13,000, maintaining pressure on financial systems nationwide. Chapter 7 filings will likely continue dominating due to ongoing personal financial pressures. Thus, a sustained high rate of filings is anticipated for the remainder of 2025.
• Looking beyond 2024, bankruptcy filings appear set to continue an upward trajectory. Economic trends indicate prolonged financial strain on households and businesses, suggesting a sustained increase in bankruptcy cases in subsequent years. Structural economic issues, such as inflation and debt burdens, will likely maintain high filing rates. District-level disparities may also widen further, intensifying regional economic differences. Consequently, the future trend suggests persistently elevated bankruptcy activity beyond the current forecasting horizon. ​​

Claude 3.7 Sonnet Analysis of this Week's Bankruptcy Statistics

1. The latest completed week (Week 9 of 2025) shows national bankruptcy filings reached 13,577, a significant jump from previous weeks. Chapter 7 liquidation filings accounted for 8,576 cases or 63.17% of all filings, while Chapter 13 repayment plans constituted 4,867 cases or 35.85% of the total. Chapter 11 reorganizations represented just 123 cases (0.91%), and Chapter 12 farm bankruptcies remained rare with only 11 filings (0.08%). Compared to the previous week's 9,392 filings, this represents a substantial 44.56% increase, suggesting a significant acceleration in financial distress across the nation.
2. The most striking aspect of this week's data is the dramatic 44.56% week-over-week increase, representing 4,185 additional filings compared to Week 8 of 2025. This single-week surge significantly exceeds the 8.38% year-over-year increase when compared to the same week in 2024, which had 12,527 filings. The current week's total also exceeds both the 4-week average of 10,044.50 and 8-week average of 9,901.50 by approximately 35-37%, highlighting an unusual spike in activity. Chapter 7 liquidations continue to dominate the filing landscape, representing nearly two-thirds of all bankruptcy cases, pointing to severe financial hardship rather than restructuring attempts.
3. At the district level, the Central District of California (CAC) led all jurisdictions with 703 total filings across all chapters, followed by the Northern District of Illinois (ILN) with 601 filings and the Middle District of Florida (FLM) with 571 cases. The Northern District of Georgia (GAN) and Eastern District of Michigan (MIE) rounded out the top five with 469 and 452 filings respectively. For Chapter 7 liquidations specifically, the Central District of California reported the highest number at 599 filings, reflecting intense financial pressure in this populous region. The data reveals that just ten districts account for approximately 34% of all national filings, indicating geographic concentration of financial distress.
4. Significant geographic disparities exist in filing patterns, with Alaska (AK) reporting just 5 total filings compared to California's Central District's 703, a 140-fold difference. The Southern region leads with 5,901 filings (43.46% of the national total), followed by the Midwest with 3,198 filings (23.55%), the West with 2,797 filings (20.60%), and the Northeast with 1,500 filings (11.05%). Rural districts generally show lower filing numbers, with Wyoming (11 filings), North Dakota (11 filings), and Vermont (7 filings) among the lowest. The data reveals concentrated financial distress in specific metropolitan areas, particularly in Southern California, Northern Illinois, Florida, Georgia, and Michigan, which may reflect localized economic challenges.
5. The year-to-date totals for 2025 have reached 86,739 filings across all bankruptcy chapters through Week 9. Chapter 7 liquidations represent 51,750 cases or 59.66% of the year's filings, while Chapter 13 repayment plans account for 33,724 cases or 38.88% of the total. Chapter 11 reorganizations constitute a small fraction at 1,203 cases (1.39%), with Chapter 12 farm bankruptcies remaining extremely rare at just 62 filings (0.07%) year-to-date. The 2025 weekly data shows an average growth rate of 10.24% week-over-week, indicating rapidly accelerating bankruptcy activity as the year progresses.
6. The year-over-year comparative analysis reveals consistently increasing bankruptcy trends, with Week 9 of 2025 showing a 13,577 total compared to 12,527 in 2024 (8.38% increase), 10,075 in 2023 (34.76% increase), and 8,333 in 2022 (62.93% increase). This progressive rise over three consecutive years suggests a sustained deterioration in financial conditions rather than a temporary anomaly. The current week's 44.56% spike over the previous week significantly exceeds the average weekly growth rate of 10.24%, indicating a potential acceleration of the existing upward trend. The most dramatic growth appears in Chapter 7 liquidations, suggesting increasing severity of financial distress rather than just higher volumes.
7. Without district-level population data in the dataset, per capita filing rates cannot be precisely calculated, but reasonable estimates can be derived based on known district populations. Small population jurisdictions like Alaska (5 filings), Vermont (7 filings), and Wyoming (11 filings) show low absolute numbers but may still represent significant per capita rates relative to their small populations. In contrast, heavily populated districts like Central California (703 filings), Northern Illinois (601 filings), and Middle Florida (571 filings) show high absolute numbers that may translate to moderate per capita rates. The Southern region's leading position with 43.46% of all filings likely relates to both population distribution and regional economic factors affecting financial stability.
8. Determining exact changes in per capita filing rates requires population trend data not included in the dataset, but the three-year increase from 8,333 weekly filings in 2022 to 13,577 in 2025 represents a 62.93% rise, substantially outpacing population growth. This suggests a significant increase in per capita filing rates, particularly in the hardest-hit districts like Central California, Northern Illinois, and Middle Florida. The accelerating year-over-year increases (8.38% from 2024 to 2025, 24.34% from 2023 to 2024, and 20.90% from 2022 to 2023) indicate a worsening trend in per capita bankruptcy rates. The regional disparity, with the South accounting for 43.46% of filings despite having approximately 38% of the US population, points to above-average per capita filing rates in this region.
9. Based on the current average weekly growth rate of 10.24% and year-to-date total of 86,739 filings, 2025 is tracking toward approximately 500,000 bankruptcy filings if current trends continue. The recent 4-week average of 10,044.50 suggests a baseline expectation of about 11,000 weekly filings for the remainder of the year, but the latest week's 13,577 total may indicate a new higher baseline. Accounting for seasonal patterns typically seen in bankruptcy filings, we might expect between 460,000 and 530,000 total filings for 2025, representing a projected 9-12% increase over 2024 totals. Chapter 7 liquidations are expected to maintain their approximately 60% share of total filings, with Chapter 13 repayment plans continuing to account for roughly 38-39% of cases.
10. Looking beyond 2025, the consistent year-over-year increases observed in the data (8.38% from 2024 to 2025, 24.34% from 2023 to 2024, and 20.90% from 2022 to 2023) suggest bankruptcy filings will continue their upward trajectory. If current trends persist, weekly filing totals could reach 15,000-16,000 by early 2026 and potentially exceed 20,000 weekly filings by 2027. Chapter 7 liquidations are likely to maintain or increase their share of total filings as financial distress intensifies, potentially reaching 65-70% of all cases by 2026. Economic headwinds including inflation, interest rates, housing costs, and consumer debt levels will be key determinants of future bankruptcy trends. Regional disparities are expected to persist, with the South and parts of the Midwest continuing to show elevated filing rates relative to the Northeast and West.

Gemini Advanced Analysis of the Bankruptcy Statistics

• National Trends: Across the United States, bankruptcy filings are up across all chapters, indicating a widespread increase in financial distress. Chapter 7 filings show the most significant jump, suggesting more individuals are seeking a fresh start financially.
• Business Bankruptcies: Chapter 11 filings, primarily used by businesses, are clustered in a few major districts, highlighting the role of specialized courts and legal expertise in handling complex reorganizations.
• Regional Differences: Bankruptcy filings are not evenly distributed across the country. Some districts show much higher rates of Chapter 7 filings, pointing to potential disparities in economic conditions and financial pressures faced by households in those areas.
• Urban vs. Rural: The data generally shows more bankruptcy filings in urban areas compared to rural ones, likely reflecting differences in population density, economic activity, and cost of living.
• Year-to-Date: So far in 2025, we've seen a noticeable rise in bankruptcy filings compared to the same period last year. This increase is driven by a surge in Chapter 7, Chapter 13, and Chapter 11 cases.
• Pre-Pandemic Comparison: While filings are up, they are still lower than the levels seen before the pandemic. This suggests that the economic recovery is still ongoing, but financial challenges persist for many.
• Population Matters: When we factor in population size, some districts with lower overall filings actually have higher bankruptcy rates per person. This highlights the importance of considering population density when assessing financial vulnerability.
• Accelerating Trends: The rate at which bankruptcy filings are increasing is not uniform. Some regions, particularly in the Southwest and Southeast, are experiencing a faster acceleration in filings, indicating growing financial pressure in those areas.
• Future Outlook: The trends suggest that bankruptcy filings will continue to rise throughout the rest of 2025, particularly for Chapter 7. This points to a potential ongoing wave of individuals seeking debt relief.
• Long-Term Projections: Bankruptcy filings are likely to remain elevated in the years to come, especially with factors like increasing student loan debt and high-interest rates. This indicates a long-term challenge for individuals and businesses alike.

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