Bankruptcy Filings Up 12.2 Percent From 2025

Federal court data signals growing financial stress among both consumers and businesses.

Bankruptcy filings climbed sharply over the past year, according to new data from the Administrative Office of the U.S. Courts — a trend ARM professionals should be monitoring as they assess recovery strategies heading into the second half of 2026.

Total bankruptcy filings reached 608,511 cases during the 12-month period ending June 30, 2026, a 12.2 percent increase compared with 542,529 cases filed in the same period a year earlier. The rise spans both business and consumer filings, signaling broad-based financial pressure across the economy.

Business Filings Jump Nearly 17 Percent

Business bankruptcies rose 16.9 percent year-over-year, increasing from 23,043 to 26,941 filings. For collection agencies working commercial accounts, that acceleration is a meaningful indicator of elevated credit risk in the marketplace. Non-business filings — the category most directly relevant to consumer collections — rose 12 percent to 581,570 cases, up from 519,486 the prior year.

A Trend Four Years in the Making

The spike does not come out of nowhere. Filings hit a historic low of 380,634 in June 2022 — the tail end of a decade-long decline from a peak of nearly 1.6 million cases in September 2010. Since that 2022 floor, total filings have increased every single quarter, and the pace is quickening. The year-over-year comparisons tell the story clearly:

• 2022: 380,634 total filings
• 2023: 418,724 (+9.9%)
• 2024: 486,613 (+16.2%)
• 2025: 542,529 (+11.5%)
• 2026: 608,511 (+12.2%)

That’s a 60 percent increase in total filings over four years.

Chapter 7 and Chapter 13 Both Rising

The chapter-level breakdown offers additional context. Chapter 7 liquidation filings grew from 333,321 to 382,161 in a year — a 14.7 percent increase — while Chapter 13 reorganization filings rose from 200,290 to 215,490, a 7.6 percent increase. Chapter 11 business reorganizations also rose, from 8,408 to 10,320 filings.

For collection agencies, a rise in Chapter 7 filings in particular carries direct operational implications. When a consumer or business files Chapter 7, the automatic stay immediately halts collection activity, and liquidation — rather than repayment — is the likely outcome.

Operational Takeaways

While total filings remain well below their post-recession highs, the consistent upward trend can’t be ignored. Review your bankruptcy monitoring protocols, ensure staff are trained on automatic stay requirements, and evaluate the downstream impact of rising filings on liquidation rates and portfolio valuations.