By SCM Staff
US bankruptcy filings have increased by double digits over the past 12 months, marking a definitive end to the decade-long decline in insolvencies and signaling rising financial pressure on both households and corporations.
According to data released Thursday by the Administrative Office of the U.S. Courts, total filings rose to 591,850 in the year ending March 31, 2026. This represents an 11.9 percent increase from the 529,080 cases reported in the previous 12-month period.
The uptick was felt across the economy. Business filings climbed 11.4 percent to reach 25,960 cases, while non-business filings—primarily personal bankruptcies—grew by 11.9 percent to 565,890
The current trajectory reflects a sustained reversal of a trend that began after the 2008 financial crisis. For over ten years, US bankruptcy totals fell steadily from a peak of nearly 1.6 million in late 2010 to a historic floor of roughly 380,000 in mid-2022.
Analysts suggest that while the current figures remain significantly below historical highs, the quarterly increases recorded since 2022 indicate a normalization of the credit cycle.
The surge in Chapter 11 filings—which rose to 9,941 from 8,844 a year prior—suggests that larger corporate entities are increasingly struggling with debt restructuring in a higher interest rate environment.
Consumer distress is most evident in the rise of Chapter 7 and Chapter 13 filings. Chapter 7 liquidations reached nearly 370,000, while Chapter 13 filings, often used by individuals to save their homes from foreclosure, climbed to 211,700.
Agricultural sectors also showed signs of strain, with Chapter 12 filings—specifically designed for family farmers—rising to 312, up from 259 in 2025 and 155 in 2024.
The data, which is compiled four times annually, serves as a critical barometer for the health of the American economy. While the absolute number of filings is modest compared to the post-2008 era, the consistent quarter-on-quarter growth suggests that the “easy money” era’s buffer has largely eroded.
The rise in filings through March 2026 should be viewed through the lens of shifting macroeconomic conditions. During the COVID-19 pandemic, government stimulus and various moratoria on foreclosures and evictions kept bankruptcy rates artificially low, hitting a floor in June 2022.
The current 11.9 percent increase is part of a multi-year “climb back” as those protections have vanished and the cost of debt service has risen. In 2022, total filings were under 400,000; in just four years, that number has grown by nearly 50 percent.
This trend is a key indicator for credit markets, suggesting that the lag between rate hikes and financial distress is now narrowing.
