Bankruptcy filings in the United States have increased sharply over the past 12 months. From July 2025 through June 2026, the number of cases filed rose to 608,511, up from 542,529 the year before. That represents an increase of roughly 66,000 cases, or 12.2% overall.
Chapter 7 bankruptcies were the main driver of this rise. These cases, which involve liquidating assets to pay off debts, jumped 14.7% year over year. Chapter 7 filings accounted for nearly three-quarters of all new bankruptcy cases during the period and represented 62.8% of all filings nationwide.
Chapter 13 bankruptcies, which involve a repayment plan over three to five years, also increased but at a slower pace. These filings grew 7.6% compared to the prior year. Chapter 13 cases made up about 35.4% of all filings.
Other bankruptcy chapters saw larger percentage jumps, though they involve far fewer cases. Chapter 11 filings, typically used by businesses and some individuals with substantial assets, rose 22.7%. Chapter 12, which applies to family farmers and fishermen, increased 19.1%.
Business bankruptcies overall climbed 16.9%, while nonbusiness filings—those by individuals and families—grew 12%. The increase in personal bankruptcies outpaced business filings in raw numbers, reflecting ongoing financial strain among American households.
These figures come from official records maintained by the Administrative Office of the U.S. Courts, which publishes bankruptcy statistics quarterly. The numbers represent all cases filed during the 12-month period ending June 30, 2026, compared to the same calendar months a year earlier. This approach allows for direct year-over-year comparisons that account for seasonal patterns and variations across different times of the year.
The reporting periods can be tricky to understand. The figures for the period ending June 30, 2026, include cases filed from July 1, 2025, through June 30, 2026—a full 12 months. These are not monthly totals or year-to-date snapshots. The court publishes these statistics four times yearly, covering periods ending March 31, June 30, September 30, and December 31.
The rising trend reflects real economic pressures facing American families. Job losses, medical bills, housing costs, and inflation have all contributed to increased financial distress. Some households have exhausted savings and credit options before turning to bankruptcy as a way to halt collections and reset their finances.
If you are considering bankruptcy or facing mounting debt, understanding your options matters. Each chapter serves different circumstances, and the choice depends on your income, assets, and the types of debt you owe. Speaking with a bankruptcy attorney in your state can help you understand what bankruptcy might mean for your specific situation and whether it makes sense for you.
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