United States personal bankruptcy filings rise amid economic distress

Personal bankruptcy filings in the United States are rising significantly, indicating increased economic distress among consumers. In 2025, more than 500,000 people filed for bankruptcy, representing a nearly 50% increase compared to 2022 levels.

Recent data shows continued growth, with a 12% increase in filings in June 2026 compared to the previous year. As consumers struggle to meet financial obligations, they are increasingly turning to the federal court process to manage insurmountable debt. While the legal process aims to provide debtors with a ‘fresh start,’ it does not discharge all forms of debt, such as alimony, child support, and most taxes.