*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 April 2nd, 2025)

Weekly year-over-year bankruptcy filings dipped for the first time this year. This apparent decline may be attributable to 2024's leap year status, which likely shifted the alignment of weeks between the years. Chapter 7 filings—a lifeline for many struggling households—were up 0.70% year-over-year (8,345 in 2024 to 8,403 in 2025). Chapter 13 filings, allowing individuals to restructure their debt, were down 6.05% year-over-year (4,367 in 2024 to 4,103 in 2025). Chapter 11 filings, often used by businesses dealing with insolvency, were up 0.81% year-over-year (123 in 2024 to 124 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

• During the 13th week of 2025, there were a total of 12,633 bankruptcy filings reported across the United States. This figure includes filings from every district and covers all major bankruptcy chapters. Of the total, 8,403 were filed under Chapter 7, 4,103 under Chapter 13, 124 under Chapter 11, and 3 under Chapter 12. These filings represent the most up-to-date complete week available in the dataset. The total volume provides a snapshot of the nation’s current financial health and levels of distress.
• One notable insight from this week is that Chapter 7 bankruptcies made up about two-thirds of all filings. This indicates that a majority of individuals and businesses are opting for liquidation rather than reorganization or structured repayment. Chapter 13 filings, which allow for debt restructuring, comprised about a third of the total. Chapter 11, typically used by businesses or individuals with complex finances, made up a small share, while Chapter 12 was nearly absent. This breakdown highlights the public’s prevailing preference for quick discharge of debt through liquidation.
• When breaking the data down by district, there are clear differences in activity. For example, the Northern District of Alabama reported 93 Chapter 7 filings during the week, compared to only 4 in Alaska. The Middle District of Alabama reported 18 Chapter 7 filings, reflecting moderate activity. These differences show how bankruptcy rates vary significantly from region to region. They also suggest that local economic conditions play a major role in bankruptcy trends.
• The geographic disparities in bankruptcy filings are stark. Some regions experience high levels of financial distress, while others remain relatively stable. For instance, one Southern district saw over 20 times the number of filings as a sparsely populated Northern district. These differences could be due to economic, demographic, or even legal factors specific to each area. As a result, any national analysis must consider the local contexts driving these numbers.
• The year 2025 is showing signs of growing bankruptcy activity. The average weekly total for filings in the weeks before the current one was just under 10,000. This week’s total exceeded that average by more than 2,600 filings. Such a sharp increase points to shifting financial pressures across the country. Whether driven by inflation, debt maturity, or job market changes, this trend signals mounting strain on households and businesses.
• Comparing 2025 to earlier years reveals a substantial rise in bankruptcy activity. If current weekly patterns hold, the total number of filings by the end of 2025 is expected to exceed 520,000. This would mark a major increase over 2024, which saw about 431,500 filings in total. The jump reflects a national trend of rising debt burdens and financial instability. Weekly data also suggest greater variability than was seen in prior years, indicating that economic conditions may be shifting more rapidly.
• Looking at filings in proportion to the national population provides added perspective. In the latest week, there were approximately 3.83 bankruptcy filings for every 100,000 people in the United States. In earlier weeks of 2025, the average was closer to 3.01 filings per 100,000 people. This rise suggests that a growing segment of the population is encountering financial hardship. Per capita analysis allows for a more accurate measure of financial stress across different time periods.
• The increase in bankruptcy filings per capita is a strong indicator of growing financial strain. The difference between this week’s rate and the average from earlier weeks in the year reflects a 27% rise. While one week does not establish a long-term trend, it may serve as an early warning sign. Such an uptick can point to macroeconomic issues like rising consumer debt, higher interest rates, or job insecurity. Monitoring this metric will be crucial for understanding where support may be needed most.
• Assuming filing levels remain steady throughout the year, the United States is on track to see over 520,000 bankruptcy filings in 2025. This estimate factors in the actual filings reported so far and uses prior weekly averages to project the remainder of the year. However, if weekly filing rates continue to increase as they did in the most recent week, the final total could be even higher. These projections emphasize the importance of watching weekly fluctuations closely. Rising numbers may call for increased legal and financial resources to manage the demand.
• Looking ahead, bankruptcy filings are expected to continue rising in 2026. Based on recent trends and average growth rates between years, next year’s total could exceed 431,000 filings. This would extend the upward trajectory that began in the aftermath of the pandemic. Economic factors such as prolonged inflation, tightening credit, and increasing debt burdens are likely to sustain this trend. Policymakers, courts, and financial institutions may need to prepare for an environment of persistently high bankruptcy activity.

ChatGPT 4.5 Analysis of this Week's Bankruptcy Statistics

1. The latest fully completed week saw a total of 12,633 bankruptcy filings nationwide, highlighting notable economic stress across the United States. Personal liquidation cases accounted for the largest share, with 8,403 filings, showing many individuals opted to discharge their debts entirely. Consumer debt restructuring followed with 4,103 filings, indicating a considerable number of individuals still prefer reorganizing their debt over complete liquidation. Corporate reorganizations were much lower, totaling only 124 filings, suggesting relative stability among businesses during this particular week. Agricultural bankruptcy filings were nearly nonexistent, with just 3 cases recorded, underscoring minimal distress within farming communities this period.
2. A particularly striking fact this week is the enormous disparity between personal liquidations, totaling 8,403 filings, and corporate reorganizations, which had only 124 filings, reflecting nearly 68 times more personal financial distress than business reorganization. This ratio reveals substantial economic pressure on individuals compared to corporations, suggesting greater resilience in corporate sectors at the moment. Meanwhile, agricultural bankruptcies remained extremely rare, signifying minimal economic distress in agriculture sectors. The high frequency of consumer debt restructuring, with 4,103 filings, further suggests confidence among debtors to manage repayment plans despite broader financial challenges. Such dynamics reflect the current complexity of financial pressures across different sectors of the economy.
3. This week's filings showed significant differences at the district level, highlighting diverse economic experiences across regions. Northern Alabama experienced notably higher filings, with 93 personal bankruptcies recorded, indicating substantial local financial stress. In stark contrast, Alaska recorded only 4 filings, showing comparatively minimal economic distress. Such differences suggest deeply uneven economic recovery or ongoing struggles among various regions nationwide. These numbers reflect how economic challenges remain significantly localized rather than evenly distributed.
4. Geographically, clear disparities in bankruptcy filings emerged, pointing to uneven economic recovery or distress across the country. Southern regions, particularly states like Alabama, saw higher bankruptcy rates, possibly tied to slower economic recovery or persistent unemployment issues. Conversely, northern states and districts like Alaska experienced far fewer filings, implying greater economic stability or resilience. Coastal and economically diversified regions exhibited mixed patterns, possibly due to fluctuating industry conditions such as tourism or manufacturing. These geographic differences demonstrate distinct local economic environments and varying impacts of national economic policies.
5. For the current year, this week's 12,633 filings continue a moderate upward trend, reflecting slightly increasing financial distress nationwide compared to earlier weeks of the year. Personal liquidations dominate the filings and continue rising, signifying ongoing individual financial pressures. Consumer debt restructuring remains consistently strong, reflecting sustained consumer willingness to manage debt without complete liquidation. In contrast, corporate bankruptcies show minimal activity, suggesting relatively stable business conditions throughout this year. This overall stability indicates the absence of sudden economic shocks or disruptions thus far in 2025.
6. Compared to previous years, bankruptcy filings this week have notably increased, highlighting growing financial strain over time. Last year's weekly filings were typically lower, pointing to an accelerating trend of economic distress this year. Personal liquidations have significantly risen compared to prior years, suggesting heightened financial struggles among consumers nationwide. Consumer debt restructuring filings also showed slight growth, indicating increasing challenges for debt repayment. In contrast, corporate and agricultural bankruptcies remained consistently low, indicating stable conditions in these sectors year-over-year.
7. On a per capita basis, bankruptcy filings indicate uneven economic impacts across the country, heavily influenced by local population densities and economic conditions. Highly populated districts, like Northern Alabama, reported notably higher filings, highlighting pronounced economic distress in urbanized regions. Low-population areas, such as Alaska, had minimal filings, suggesting relatively stable local economies or lower economic burdens per resident. However, some rural districts, despite fewer filings overall, might still face proportionally significant economic challenges. Understanding per capita impacts is essential for accurately assessing localized economic conditions and implementing appropriate interventions.
8. Examining changes in per capita filings over time reveals rising economic pressures in urban areas, particularly in densely populated districts facing industrial or employment-related struggles. Historically stable regions, such as Alaska, continue to show consistently low per capita filings, underscoring their economic resilience. Conversely, districts like Northern Alabama have experienced an increase in per capita filings, reflecting intensifying local economic difficulties. These shifting per capita trends signal evolving economic vulnerabilities and highlight regions potentially needing targeted economic support. Monitoring these changes closely can provide early warning signs of deeper economic shifts.
9. Forecasting bankruptcy filings for the remainder of 2025 suggests filings will likely remain elevated or gradually increase, indicating sustained economic stress nationwide. Personal liquidations are expected to dominate, maintaining their current high levels or slightly increasing, reflecting ongoing financial challenges among individuals. Consumer restructuring filings are anticipated to gradually grow as more individuals seek structured debt management options. Corporate bankruptcy filings should remain low or slightly decrease, as corporate conditions appear stable without evident signs of immediate distress. Unless unforeseen economic disruptions occur, the overall trajectory for filings this year should remain steady with incremental growth.
10. Beyond 2024, bankruptcy filings are projected to continue increasing, driven by ongoing economic pressures such as persistent inflation, rising interest rates, and potential slowdowns in economic growth. Personal bankruptcy filings, particularly liquidation cases, are likely to remain high as individuals increasingly grapple with financial challenges. Corporate bankruptcies, while currently stable, may rise slightly, reflecting potential future pressures on business operations if economic conditions deteriorate. Geographically, regions already experiencing high filing rates could see intensified financial distress unless significant economic interventions occur. Long-term forecasts suggest ongoing vigilance and targeted policy measures will be crucial to managing and mitigating future economic challenges effectively.

Claude 3.7 Sonnet Extended Analysis of the Bankruptcy Statistics

• Week 13 of 2025 saw a substantial 12,633 bankruptcy filings across the United States, representing a 9.51% increase from the previous week's 11,536 filings. Consumer bankruptcies dominated the landscape with Chapter 7 liquidations accounting for 8,403 filings or 66.52% of all cases, while Chapter 13 repayment plans represented 4,103 filings or 32.48% of total cases. Business-related bankruptcies remained relatively minimal, with Chapter 11 reorganizations contributing just 124 filings (0.98%) and Chapter 12 family farmer bankruptcies at a mere 3 filings (0.02%). The current week's filing total of 12,633 is 26.98% higher than the 2025 weekly average of 9,948.58 filings from prior weeks, indicating an accelerating trend in bankruptcy activity.
• An interesting fact about Week 13's filings is the slight year-over-year decrease of 1.62% compared to the same week in 2024, which had 12,841 filings, breaking the otherwise consistent upward trend observed in recent years. However, this small decrease masks a significant shift in the composition of filings, with Chapter 7 liquidations now representing 66.52% of all cases, up from 64.99% in the same week of 2024. Meanwhile, Chapter 13 repayment plans have decreased to 32.48% of filings compared to 34.01% in the same week last year, suggesting more debtors are opting for complete liquidation rather than restructuring their debts. Chapter 12 family farmer bankruptcies have declined by 50% from 6 cases in Week 13 of 2024 to just 3 cases in the current week, though these numbers are too small to indicate a significant trend. Chapter 11 business reorganizations have remained almost unchanged year-over-year, with 124 filings compared to 123 filings in the same week last year.
• At the district level, the Middle District of Florida (FLM) led the nation with 579 total filings in Week 13, followed closely by the Central District of California (CAC) with 564 filings. The Northern District of Illinois (ILN) recorded 456 filings, while the Northern District of Georgia (GAN) and Eastern District of Michigan (MIE) rounded out the top five with 412 and 409 filings respectively. These five districts alone accounted for 2,420 filings, or approximately 19.2% of all national bankruptcy filings, highlighting the geographic concentration of financial distress. The high filing numbers in these districts reflect ongoing economic challenges in major metropolitan areas including Orlando, Los Angeles, Chicago, Atlanta, and Detroit. The Central District of California's high Chapter 7 liquidation rate of 492 filings indicates severe financial distress in that region.
• Geographic disparities in bankruptcy filings reveal significant economic variations across the country, with the bottom five districts showing dramatically lower filing numbers than the top districts. Alaska (AK) had just 4 total filings, Vermont (VT) recorded 5 filings, the District of Columbia (DC) had 6 filings, North Dakota (ND) had 9 filings, and the Northern District of West Virginia (WVN) rounded out the bottom five with 13 filings. The disparity between the top district (FLM with 579 filings) and the bottom district (AK with 4 filings) represents a 145-fold difference, highlighting the extreme concentration of bankruptcy activity in certain regions. Urban and industrial centers consistently show higher filing rates than rural areas, with Florida, California, Illinois, Georgia, and Michigan districts dominating the top of the list. The geographic pattern suggests that economic distress remains concentrated in areas with higher population density and regions still recovering from previous economic challenges.
• The 2025 filing data shows a concerning upward trend, with the year-to-date weekly average of 10,155.08 filings representing a 4.84% increase over the 2024 average of 9,686.56 filings. Week 13's total of 12,633 filings is particularly troubling as it significantly exceeds the yearly average, suggesting an acceleration in bankruptcy activity as the year progresses. The projected annual total for 2025 based on current averages would be approximately 517,326 filings, continuing the upward trend seen in recent years. Chapter 7 liquidation filings have increased their share of total filings in 2025, now representing 66.52% of all cases compared to the historical average of 59.61% from previous years. This shift toward liquidation bankruptcies rather than reorganization or repayment plans suggests more severe financial distress among filers, who may lack sufficient income to qualify for repayment plans.
• Comparing Week 13 of 2025 with the same week in previous years reveals a consistent upward trend despite the small year-over-year decline from 2024 to 2025. The current week's 12,633 filings represent a 12.0% increase from Week 13 of 2023 (11,280 filings) and a substantial 33.9% increase from Week 13 of 2022 (9,438 filings). The yearly average filing data confirms this trend, with 2023's average of 8,560.46 filings representing a 17.67% increase from 2022's average of 7,274.90 filings, and 2024's average of 9,686.56 filings showing a 13.15% increase from 2023. The composition of filings has remained relatively stable over the years, with Chapter 7 consistently representing 64-67% of filings and Chapter 13 accounting for 32-35% of filings in Week 13 across different years. Chapter 11 business reorganizations have gradually increased their share from 0.57% in 2022 to 0.98% in 2025 for Week 13, potentially indicating slightly more business distress.
• Analyzing filings per capita would provide a more nuanced understanding of bankruptcy trends, as the five districts with the highest filing numbers also have large populations. The Middle District of Florida's 579 filings likely represent a higher per-capita rate than regions like California's Central District with 564 filings, given Florida's smaller population base. Alaska's extremely low filing count of 4 for the week reflects both its small population and potentially stronger economic conditions. Districts with historically high filing rates per capita, such as those in the Southeast (Florida, Georgia) and industrial Midwest (Michigan, Illinois), continue to show elevated bankruptcy levels in the latest data. The District of Columbia's low filing count of just 6 despite its urban nature suggests unique economic factors, potentially including higher average incomes and government employment stability, leading to lower bankruptcy rates.
• The changing pattern of filings per capita over time suggests a widening economic gap between different regions of the country. While national filing numbers have increased by 4.84% from 2024 to 2025 on average, the distribution appears increasingly concentrated in specific districts. The top five districts by filing volume have maintained or increased their share of total filings, suggesting these regions are experiencing more acute financial distress relative to other areas. The shift toward Chapter 7 liquidation bankruptcies (now 66.52% of filings compared to the historical average of 59.61%) indicates deeper financial problems among filers, who increasingly lack the income needed for repayment plans. Alaska's consistently low filing numbers (just 4 in Week 13) represent one of the lowest per-capita rates in the country, highlighting the significant regional disparities in financial distress. The District of Columbia (6 filings) and Vermont (5 filings) also maintain low per-capita rates, suggesting more economic stability in these regions.
• Based on current trends, we can forecast that bankruptcy filings will continue to rise throughout 2025, potentially exceeding the projected annual total of 517,326 filings. The 26.98% gap between Week 13's filings (12,633) and the year-to-date average (9,948.58) suggests an accelerating trend that could push the actual 2025 total higher than current projections. If the growth rate from Week 12 (11,536 filings) to Week 13 (12,633 filings) of 9.51% were to continue for even a few more weeks, the annual total would significantly exceed projections. The combination of increasing Chapter 7 liquidation percentages (now 66.52% of all filings) and declining Chapter 13 repayment plans (32.48%) suggests economic conditions for consumers may be deteriorating, potentially driving further increases in filing numbers. Districts that already show high filing numbers, such as the Middle District of Florida (579 filings) and Central District of California (564 filings), will likely continue to lead the nation in bankruptcy activity.
• Looking beyond 2025, we can forecast a continued upward trend in bankruptcy filings, though possibly at a slowing rate compared to the sharp increases seen from 2022 to 2023 (17.67%) and 2023 to 2024 (13.15%). The current year-over-year growth rate of 4.84% for 2025 suggests that while filings continue to rise, the rate of increase may be moderating. The increasing predominance of Chapter 7 liquidations (66.52% of filings in Week 13, 2025) compared to the historical average (59.61%) suggests a structural shift in bankruptcy patterns that will likely persist in coming years. Geographic disparities will likely continue, with the top five districts (FLM, CAC, ILN, GAN, MIE) maintaining their high filing volumes due to underlying economic conditions in those regions. Business bankruptcies, while currently low at just 0.98% of filings for Chapter 11, may increase in future years if economic conditions deteriorate, potentially pushing the total filing numbers even higher.

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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