U.S. Consumer Bankruptcies Rose 12% in 2025 Amid Inflation and High Debt
New nationwide court data compiled by Epiq AACER show U.S. consumer bankruptcy filings climbed 12% in 2025, from 478,752 cases in 2024 to 533,949, while commercial bankruptcies rose 5%, signaling mounting financial strain on households and businesses despite cooling headline inflation. Experts tell CBS News that higher medical insurance costs, growing credit‑card balances, the restart of student‑loan payments and still‑elevated interest rates are key drivers, with many families delaying bankruptcy until they are buried in bills. Chapter 11 business filings ticked up 1%, reflecting the squeeze of 2023–24 rate hikes and inflation, and recent high‑profile cases include Saks Global, whose Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman stores are expected to stay open under restructuring. Analysts stress that filings remain below pre‑COVID levels and largely represent a normalization after pandemic‑era relief, but they warn the upward trend that began in 2022 could accelerate through this year and into next as temporary buffers vanish. The pattern reinforces broader polling that most Americans still struggle with basic costs like housing, food and health care, even as official inflation readings improve.
đź“Ś Key Facts
- Total U.S. consumer bankruptcy filings increased from 478,752 in 2024 to 533,949 in 2025, a 12% jump, according to Epiq AACER data from PACER.
- Commercial bankruptcy filings rose 5% year‑over‑year in 2025, while Chapter 11 restructurings were up 1%, tied to prior interest‑rate hikes and inflation.
- Experts cite rising medical‑insurance costs, mounting credit‑card debt, resumed student‑loan repayments and lingering inflation as major catalysts, and say filings are still below but moving back toward pre‑pandemic norms.
đź“Š Relevant Data
Black Americans file for bankruptcy at roughly twice the rate of White Americans.
Bankruptcy Rates by Race — Investopedia
46% of Black bankruptcy filers choose Chapter 13 compared to 23% of White filers, despite Chapter 13 being more expensive and less likely to result in debt discharge.
Racial Disparities in Outcomes of Bankruptcy Filings — NBER
Hispanic filers experience an 11.7 percentage point lower debt discharge rate compared to White filers in bankruptcy proceedings.
Racial Disparities in Outcomes of Bankruptcy Filings — NBER
As of 2023, the US population is approximately 59% White (non-Hispanic), 13.6% Black, and 19% Hispanic, providing context for per capita disparity calculations in bankruptcy filings.
Bankruptcy Statistics [Updated For 2025] — Debt.org
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