U.S. bankruptcy filings rose 12.2 percent during the 12-month period ending June 30, 2026, reaching 608,511 cases as a financial crisis deepens for millions of Americans struggling with debt. The surge reflects mounting economic pressure on both consumers and small businesses, though filings remain below their all-time peak from 2005.
More than 500,000 people filed for personal bankruptcy in 2025, nearly 50 percent more than in 2022, according to The Conversation’s analysis of U.S. Courts data. Personal bankruptcy filings saw a 12 percent jump in June 2026 from a year earlier as consumers struggled to pay their bills. Non-business filings rose 12 percent to 581,570 cases compared with 519,486 in the previous year, while business bankruptcies increased 16.9 percent from 23,043 to 26,941.
The climb from a historic low of 368,000 filings in 2022 has accelerated steadily. The bankruptcy rate rose about 48 percent between 2022 and 2025, according to NPR reporting, signaling a sharp reversal from the pandemic years when government stimulus payments and expanded unemployment benefits kept millions of Americans afloat. With those relief programs ending, consumers face mounting pressure from income that has not kept pace with inflation and sharp jumps in credit card interest rates.
Small businesses are also struggling. Subchapter V small business bankruptcy filings jumped 67 percent in the first quarter of 2026, reaching 833 filings compared with 499 in the same period a year earlier, according to Securitas Global. The broader trend reflects what experts describe as a structural economic challenge: elevated borrowing costs and persistent inflation are straining both household budgets and business balance sheets.
While the current trajectory is concerning, filings have not yet reached the 1.6 million peak recorded in 2005 during the housing crisis, nor have they surpassed pre-pandemic levels overall. However, economists and legal experts warn that the consistent quarter-over-quarter increases suggest the trend will continue. The U.S. Courts reported that filings have increased each quarter since hitting their 2022 low, with no sign of reversal in recent months.
For those facing financial distress, bankruptcy offers a legal path to relief, though it comes with long-term consequences. Research shows that people who file for bankruptcy typically take 15 to 25 years to recover financially to the level of peers who did not file, even though the bankruptcy filing itself remains on credit reports for only 10 years. Student loan borrowers face additional pressure as SAVE plan protections end, adding another layer of financial strain for millions already stretched thin.
Sources
- U.S. Courts — official bankruptcy filing statistics for the 12-month period ending June 30, 2026
- The Conversation — analysis of personal bankruptcy trends, inflation’s impact, and historical context
- NPR — bankruptcy rate increase between 2022 and 2025, comparison to pre-pandemic levels
- Securitas Global — small business bankruptcy filing surge in Q1 2026
