Household Debt and Bankruptcy

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.