Bankruptcy Increases

Personal bankruptcy filings are rising sharply across the country. These bankruptcies are almost always a last resort, resulting in serious long-term consequences including difficulty finding housing or employment, lower credit scores, and higher borrowing costs. The surge in bankruptcy filings signals growing financial strain on American households from rising prices, elevated interest rates, and increased unemployment.

Co-Equal has developed estimates of personal bankruptcy filings for the counties represented by each member of Congress. In the counties represented by the average member of Congress:

• Approximately 1,200 personal bankruptcy cases were filed in the 12 months ending September 2025.
• Filings increased by 11% compared to the prior 12-month period.

Nationally, 527,297 individuals or families filed for bankruptcy during this period—an increase of 51,459 filings over the prior year.

Note: estimates reflect 12-month periods ending September 30, 2025 and September 30, 2024. Estimates were released on December 11, 2025.