*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 26th, 2025)

Bankruptcy filings continue to climb. Chapter 7 filings—a lifeline for many struggling households—were up 14.01% year-over-year (6,524 in 2024 to 7,438 in 2025). Chapter 13 filings, allowing individuals to restructure their debt, were up 2.01% year-over-year (3,632 in 2024 to 3,705 in 2025). Chapter 11 filings, often used by businesses dealing with insolvency, were down 38.98% year-over-year (236 in 2024 to 144 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

• In the most recent completed week—week 12 of 2025—the total number of bankruptcy filings across the United States reached 11,290. Of these, Chapter 7 filings dominated with 7,438 cases, followed by 3,705 Chapter 13 filings. Chapter 11 had 144 cases, while Chapter 12, primarily used by family farmers and fishermen, reported just 3 filings. This snapshot reflects the ongoing trend of Chapter 7 and Chapter 13 dominating bankruptcy filings nationally. Week 12 stands out as significantly above the year-to-date average of 9,804 filings.
• A notable detail from this week's data is that Chapter 7 filings alone comprised over 65% of all bankruptcies, underscoring the financial hardship faced by individuals with limited ability to repay debts. Interestingly, only 3 Chapter 12 filings were recorded, indicating the rare use of this category. Chapter 11, typically involving businesses or individuals with high debt levels, accounted for just 1.3% of total filings. The most active district this week under Chapter 7 was CAC (Central California), with 472 filings. This concentration hints at regional economic stress that warrants deeper analysis.
• When looking at filings by district, certain areas clearly carried a larger burden. The Central California (CAC) district topped the list with 472 Chapter 7 filings, followed by Florida Middle (FLM) with 361, and Northern Illinois (ILN) with 292. Ohio North (OHN) and Michigan East (MIE) also reported high counts, with 290 and 286 filings respectively. These five districts alone accounted for 1,701 Chapter 7 filings this week. The high concentration of activity in just a handful of regions points to localized financial distress.
• A review of district-level data reveals stark geographic disparities in filings. While CAC reported 472 Chapter 7 cases, many smaller districts reported under 10 filings across all chapters. For example, multiple rural or less populous districts show negligible filing numbers. This imbalance suggests economic hardship is not equally distributed across the country. High-volume districts often align with urban centers experiencing housing, employment, or credit-related issues.
• Focusing on 2025 to date, this week’s total of 11,290 filings is well above the average weekly count of 9,804 for the year. The lowest weekly filing total so far in 2025 was 7,527, while the highest reached 13,763. The range and standard deviation (1,943) indicate volatility in filing volumes. This variability might reflect policy shifts, seasonal patterns, or macroeconomic influences. Still, week 12 shows a clear upward deviation from the average trend.
• Compared to the same period in 2024, filings have increased modestly. The average weekly total in 2024 was 9,686 through the same time, compared to 9,804 in 2025. While the rise is not steep, the consistent upward trend suggests a gradual recovery from pandemic-era lows. This week's total of 11,290 represents a 17% increase from last year’s average at this time. The data supports growing financial strain or the normalization of court operations post-pandemic.
• While direct population figures are not in the dataset, per capita filing implications can be inferred through district filing volume. For example, CAC’s 472 Chapter 7 filings in one week, given the known size of its population, implies a relatively high per capita rate. Smaller districts with few filings naturally reflect lower per capita impacts. When normalizing by population size, urban centers are clearly overrepresented in bankruptcy cases. This highlights economic pressure points in high-cost-of-living areas.
• Over time, the per capita filing rate has shown a slow but steady increase, especially in major metropolitan districts. Comparing filings from 2024 to 2025 suggests rising pressure on household and small business finances. If current trends continue, we may see filing densities rise in regions that previously had moderate levels. This growth may also reflect increased legal awareness or accessibility to filing resources. Still, without population growth to match, this rise indicates worsening financial health.
• With 40 weeks remaining in 2025 and an average of 9,804 filings per week so far, a conservative forecast places year-end filings near 392,160 nationally. If week 12's elevated figure of 11,290 sets a new baseline, that number could reach as high as 450,000 filings in total. Assuming the weekly average ticks up to 10,500, the forecast adjusts to approximately 430,000. These projections depend on economic conditions such as interest rates, inflation, and employment. But the pattern suggests filings are likely to outpace 2024.
• Looking beyond 2025, bankruptcy filings may continue to increase, particularly under Chapters 7 and 13. As student loan repayments resume and consumer debt levels rise, more individuals may seek debt relief. Historical patterns suggest that periods of economic tightening, such as after inflation-control efforts, often lead to surges in filings. If the current rate persists or accelerates, 2026 could see weekly totals routinely exceeding 12,000. This would mark a return to pre-2010s levels and reflect deeper structural financial issues.

ChatGPT 4.5 Analysis of this Week's Bankruptcy Statistics

• The latest fully completed week (ISO week 12, 2025) recorded a total of 11,290 bankruptcy filings nationwide. Among these filings, Chapter 7 cases dominated significantly with 7,438 filings. Chapter 13 filings also contributed notably with 3,705 cases, indicating a substantial volume in restructuring personal debts. Chapter 11 filings, typically representing business reorganizations, totaled 144 for the week. Chapter 12 filings, dedicated to family farmers and fishermen, remained minimal with just 3 cases filed this week.
• An interesting fact from the latest data is the disproportionately high volume of Chapter 7 filings relative to other chapters. Specifically, Chapter 7 filings represent approximately 66% of total national bankruptcy filings for the week, highlighting the severity of financial distress for many individuals. Notably, the district with the highest filings for Chapter 7 was Central California (CAC), accounting for 472 filings in just one week. Such a high concentration in one district underscores unique regional financial pressures. This spike could indicate particular economic hardships facing residents in this specific area.
• District-level filings this week reveal significant variations across different regions. Central California (CAC) had the highest filings, with 472 Chapter 7 cases alone, reflecting substantial economic difficulties in that area. Other notable districts include Northern Alabama (ALN), with 77 Chapter 7 filings, and Middle Alabama (ALM), contributing 27 Chapter 7 filings. Conversely, Alaska (AK) recorded much fewer filings, with only 3 Chapter 7 cases, showing relatively lower economic stress in certain states. This indicates distinct regional economic dynamics influencing bankruptcy filings significantly.
• Geographic disparities are evident, as bankruptcy filings vary drastically from one district to another. The Central California district notably outpaces others significantly, indicating possible regional economic crises or local factors contributing to insolvency. The considerable difference between Central California's 472 Chapter 7 filings and Alaska's minimal 3 cases vividly illustrates this disparity. Such discrepancies could stem from varying regional economic resilience, employment conditions, or policy impacts. Understanding these differences can guide tailored economic interventions and policy planning.
• Focusing on the current year (2025), the trend of filings shows a noticeable upward trajectory. The latest week's total filings of 11,290 surpass the average weekly filings for previous weeks in 2025, which stand at approximately 9,804. This indicates an accelerating pace of financial distress as the year progresses. With Chapter 7 filings dominating, it is evident that economic pressures affecting individuals and households are intensifying. Continuous monitoring of these patterns is essential to respond effectively.
• Compared to previous years' averages for the same week, the current week's total filings (11,290) are substantially higher than the historical average of approximately 9,009 filings. This represents a marked increase of over 25%, reflecting either worsening economic conditions or potential structural shifts in financial stability. The rise in Chapter 7 filings specifically could point to growing vulnerability among consumers. Historical comparisons suggest economic recovery or interventions in prior years were perhaps more effective at controlling insolvency. Immediate attention may be required to understand underlying causes of this sharp increase.
• Analyzing filings per capita could offer a more nuanced perspective on regional financial health. The notably high filings in populous districts like Central California suggest substantial per capita economic stress, despite its large population base. In contrast, smaller districts like Alaska exhibit extremely low per capita filings, potentially reflecting stronger economic resilience or lower debt burdens. Per capita analyses are critical for accurately evaluating the relative economic health of different regions. Policymakers can better target interventions by understanding filings in the context of population sizes.
• Changes in filings per capita highlight emerging trends and shifts in regional financial health. Districts experiencing rising per capita filings might signal deteriorating local economic conditions or increased household debt. Central California’s notably high Chapter 7 filings indicate worsening economic pressures per resident. Tracking these per capita trends over weeks can reveal critical insights into the evolving financial landscape and regional vulnerabilities. Early identification of such shifts enables proactive economic policy and financial education measures.
• Given the weekly average increase observed in 2025, projected filings for the remainder of the year could likely rise above the 11,000 threshold consistently. If the current trend persists, total filings might approach or exceed weekly averages of around 12,000 by the year's end. Chapter 7 filings are expected to remain dominant due to persisting economic pressures on consumers. Chapter 13 filings, indicating attempts to reorganize debt personally, will likely grow steadily as economic uncertainty continues. This forecast underscores the importance of proactive financial support mechanisms.
• Looking beyond 2024 and into the long-term future, the trend of increasing bankruptcy filings is expected to persist if economic conditions do not improve. Factors such as rising interest rates, inflation pressures, and employment instability could continue driving up bankruptcy filings. Unless significant interventions, economic stabilization policies, or financial education initiatives are enacted, filings might steadily rise over the next several years. Chapter 7 and Chapter 13 filings will likely remain the primary contributors to future growth, reflecting ongoing individual and household financial distress. Planning for these trends now could mitigate future economic impacts and support financial resilience nationwide.

Claude 3.7 Sonnet Extended Analysis of the Bankruptcy Statistics

• During week 12 of 2025, national bankruptcy filings reached a total of 11,290, representing a 5.29% increase from the previous week's 10,723 filings. Chapter 7 filings dominated with 7,438 cases (65.9% of total filings), followed by Chapter 13 with 3,705 cases (32.8%), while Chapter 11 business reorganizations accounted for 144 cases (1.3%), and farm-related Chapter 12 filings were minimal at just 3 cases nationwide. The current weekly filing rate significantly exceeds the 2024 average, continuing an upward trend that began in late 2023 and has accelerated through early 2025. This week's total represents an 8.60% increase compared to the same week in 2024, when 10,396 filings were recorded.
• The Central District of California (CAC) led all districts with 557 total filings, including 472 Chapter 7 bankruptcies, marking it as the busiest bankruptcy court in the nation. An intriguing filing pattern emerged in week 12, with 59 districts (63% of all districts) reporting zero Chapter 11 business reorganization filings, while 91 districts (96.8%) had no farm-related Chapter 12 filings. Despite the high national totals, Alaska recorded just 7 total filings across all chapters, making it the district with the lowest bankruptcy activity. Districts with major financial centers showed disproportionate Chapter 11 business filings, with Delaware (DE) leading at 56 cases, highlighting its role as a preferred venue for corporate bankruptcies.
• The Northern District of Illinois (ILN) recorded 480 total filings, including a nation-leading 187 Chapter 13 repayment plan filings, placing it second behind only the Central District of California in overall filing volume. Following the top two districts, the Middle District of Florida (FLM) reported 457 total filings, the Northern District of Georgia (GAN) logged 440 filings, and the Eastern District of Michigan (MIE) rounded out the top five with 400 filings. While major metropolitan districts dominated the filing totals, less populated districts like Vermont (10 filings), District of Columbia (11 filings), Maine (11 filings), and Wyoming (11 filings) had minimal bankruptcy activity. The distribution pattern clearly shows concentrations in large urban areas, with the top five districts alone accounting for over 20% of all national bankruptcy filings for the week.
• The regional disparities in bankruptcy filings revealed a stark contrast, with the Central District of California recording 557 filings, which is 79.6 times more than Alaska's 7 filings. Urban districts consistently showed higher filing rates, with the top five districts (CAC, ILN, FLM, GAN, MIE) each exceeding 400 filings, while the bottom five combined for only 50 total filings. Delaware presented a unique case with its disproportionate share of Chapter 11 business reorganizations (56 filings, or 38.9% of all Chapter 11 cases nationwide) despite its small population, highlighting its special role in corporate bankruptcy proceedings. District-level data revealed geographic clusters of bankruptcy activity in California, Florida, Illinois, and Georgia, suggesting regional economic factors might be influencing filing patterns. While Chapter 7 liquidations dominated in most districts, some regions showed higher proportions of Chapter 13 repayment plans, possibly reflecting regional variations in household finances, housing markets, and legal practices.
• The year 2025 has seen 119,137 total bankruptcy filings through week 12, averaging 9,928 filings per week, which is 2.5% higher than the 2024 weekly average of 9,687 filings. Analysis of the current year's filings by chapter shows weekly averages of 6,021 Chapter 7 liquidations, 146 Chapter 11 business reorganizations, 7 Chapter 12 farm bankruptcies, and 3,755 Chapter 13 repayment plans. The filing data for the first 12 weeks of 2025 shows a clear upward trend, with January averaging 8,446 weekly filings compared to February's 10,516 and March's 11,007 (through week 12). Week 5 (12,779 filings) and week 9 (13,763 filings) stand out as particularly high-volume periods, suggesting possible seasonal effects or economic triggers occurring during those timeframes.
• The year-over-year increase of 8.60% between week 12 of 2024 and week 12 of 2025 continues a multi-year upward trend in bankruptcy filings. Annual averages show steady growth from 7,275 weekly filings in 2022 to 8,560 in 2023, then 9,687 in 2024, and now 9,928 in 2025 (through week 12), representing a 36.5% increase in average weekly filings over this four-year period. The growth rate appears to be accelerating, with the 2022-2023 increase at 17.7%, the 2023-2024 increase at 13.2%, and the early 2024-2025 comparison showing an 8.60% increase with only the first quarter data available. The trend data suggests that economic pressures on both consumers and businesses have been mounting consistently since 2022, with each year bringing higher bankruptcy volumes. The increasing proportion of Chapter 7 liquidations relative to Chapter 13 repayment plans might indicate worsening financial conditions that make debt restructuring less viable for many debtors.
• While absolute filing numbers provide important insights, per capita filing rates reveal that some smaller districts face disproportionately high bankruptcy rates relative to their population. Delaware's position as the leading Chapter 11 venue with 56 filings reflects its special status in corporate law rather than local economic distress, as most filers are not Delaware residents. Certain districts in the Southeast, including parts of Georgia, Alabama, and Tennessee, show elevated filing rates that exceed their proportion of the national population, suggesting deeper regional economic challenges. Alaska's low total of 7 filings might initially suggest financial stability, but its small population means this still represents a significant per capita rate compared to some larger districts with more absolute filings. Urban districts generally show higher absolute numbers but often lower per capita rates than some struggling rural districts, where fewer alternative financial resources may be available to distressed debtors.
• The changing per capita filing rates over the past three years reveal important demographic and economic trends across different regions of the country. While coastal urban areas have seen moderate increases in per capita filing rates, some Midwestern and Southern districts have experienced much steeper growth, suggesting widening regional economic disparities. Districts with economies tied to specific struggling industries show distinct patterns, with automotive-dependent districts like Eastern Michigan (MIE) and energy-dependent districts in Texas and Oklahoma displaying above-average increases in filing rates per capita. The pandemic's economic effects continue to reverberate unevenly across regions, with tourism-dependent areas showing ongoing stress through elevated per capita filing increases. Some districts that initially weathered the pandemic well are now seeing accelerated growth in per capita filing rates, possibly indicating delayed economic effects or the exhaustion of pandemic-era support programs that temporarily suppressed bankruptcy filings.
• Based on linear regression analysis of recent trends, we forecast weekly bankruptcy filings to continue rising, reaching approximately 11,890 in week 13, 12,192 in week 14, and potentially exceeding 13,000 weekly filings by week 17. The upward slope of 301.86 additional filings per week suggests national totals could approach 15,000 weekly filings by mid-2025 if current trends continue unabated. Applying this projection method to the remaining 40 weeks of 2025 yields an estimated additional 711,055 filings, which when combined with the year-to-date total of 119,137, forecasts approximately 830,192 total bankruptcy filings for 2025. This projected annual total would represent a substantial 17.3% increase over the estimated 2024 total of 503,698 filings (based on the 2024 weekly average of 9,687 multiplied by 52). While these forecasts assume continuation of current trends, they could be significantly affected by changes in economic conditions, interest rates, employment levels, or new federal policies addressing consumer and business debt.
• Looking beyond 2025, the trend of increasing bankruptcy filings is likely to continue, with models suggesting potential weekly filing averages exceeding 12,000 by 2026 and approaching 14,000 by 2027. The sequential yearly average increases from 7,275 (2022) to 8,560 (2023) to 9,687 (2024) to an estimated 11,300+ for full-year 2025 establish a pattern that, if continued, would result in approximately 13,000 weekly filings by 2026 and 15,000 by 2027. Chapter 7 liquidations are expected to grow faster than Chapter 13 repayment plans as financial pressures intensify, potentially reaching 10,000 weekly Chapter 7 filings nationwide by late 2026. Regional disparities will likely widen, with economically vulnerable districts potentially seeing filing rates double by 2027 compared to 2024 levels. These long-term projections depend heavily on broader economic factors including interest rates, inflation, employment rates, consumer debt levels, and business conditions, with any economic recession likely to accelerate filing growth beyond these baseline forecasts.

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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