There was a double-digit increase in bankruptcies year-over-year in 2025, according to new data from Epiq AACER, a provider of U.S. bankruptcy filing data. In December alone, there was a 21% increase in consumer filings, per the report.
Overall, the 565,759 total bankruptcies reported in the U.S. during the 2025 calendar year were up 11% compared to 2024. Consumer totals were up to 533,949 – a 12% increase over the previous year.
Consumer Chapter 7 filings, “the sale of a debtor’s nonexempt property and the distribution of the proceeds to creditors,” as described by the government, had a particularly sharp increase of 15% to 332,706. Meanwhile, Chapter 13 bankruptcy filings, which “provides for adjustment of debts of an individual with regular income,” increased by 6%.
“The increase in bankruptcies reflects the convergence of economic stressors that continue to weigh on consumers and businesses,” said Amy Quackenboss, executive director of ABI, a nonpartisan organization that partnered with Epiq AACER. “Elevated borrowing costs, persistent inflation, and geopolitical uncertainty have more families and businesses seeking a financial fresh start through bankruptcy.”
Audacy reported in December on poll results that showed more than 60% said the U.S. economy wasn’t working well for them. This month, we also reported on record-high online sales during the recent holiday season.
Bankruptcy filings last month totaled 45,935, according to Epiq AACER’s report, up from 38,163 in December 2024. Total consumer filings were up 21%, consumer Chapter 7 filings were up 24% compared to December 2024 and Chapter 13 filings were up 17%.
“December’s results highlight a sharp acceleration as volumes continue to normalize toward pre‑pandemic levels and a return to more typical economic pressures,” said Michael Hunter, vice president of Epiq AACER. He also said the consumer filings signal “the momentum we expect to continue into 2026 as consumers and businesses in distress seek bankruptcy for protection.”
Even as Hunter predicts more bankruptcies on the horizon this year, levels are still below where they were before the COVID-19 pandemic hit in 2020. In 2019, a total of 757,816 bankruptcy filings were recorded, based on Epic AACER data.