The number of Americans filing bankruptcy applications is increasing again. According to data from Epiq AACER - the bankruptcy file tracking platform in the US, the total number of consumer bankruptcy applications has increased by 12%, from 478,752 applications in 2024 to 533,949 applications in 2025.
Epiq AACER compiles data from the US Federal Court's PACER system. This increase is considered the latest sign that many households are under great financial pressure, while the "cushions" supporting the pandemic period are no longer there.
According to experts, the bankruptcy wave does not appear suddenly but is often delayed compared to economic fluctuations. Mr. John Rao - senior lawyer at the National Consumer Law Center - said that Americans often try to delay filing for bankruptcy as long as possible, because this is a decisive decision with many consequences.
However, Mr. Rao pointed out a series of factors that are playing the main "catalyst" role. That is the sharp increase in health insurance costs, increasingly large credit card debts and the resumption of student loan payments after a period of postponement.
High inflation also makes it more difficult for many families to balance daily spending and debt repayment obligations.
At some point, overlapping invoices and continuous credit card debt will exceed the tolerability of many people" - Mr. Rao said.
This reality was reflected in a CBS News survey in December showing that the majority of Americans are having difficulty paying for essential needs such as healthcare, food and housing.
In that context, bankruptcy is seen as a "goal" to re-establish the financial situation, helping to end debt collection calls and possibly eliminate part or all debt obligations.
However, this option also comes with a significant price. Submitting a bankruptcy application can seriously damage credit points, slow down the ability to buy a house and make access to future loans more difficult.
Not only consumers, the number of bankruptcies in the commercial sector is also increasing. Epiq AACER data shows that the number of business bankruptcies increased by 5% from 2024 to 2025.
In the past year, many national and regional retailers have left the market, including familiar names like Forever 21 and Joann Fabrics - businesses that could not stand firm despite seeking bankruptcy protection.
According to Mr. Christopher Ward - co-chairman of the bankruptcy and restructuring department of Polsinelli Law Firm - high interest rates in the period 2023-2024 along with inflation are the main factors that make it difficult for many businesses to manage cash flow.
Experts emphasize that the current bankruptcy wave partly reflects the return to the "normal" state before the pandemic. During the COVID-19 period, government financial support packages and debt repayment programs helped many businesses and households avoid bankruptcy.
When these temporary support measures ended, the number of bankruptcy applications began to increase again, with a clear trend from 2022. Although the total number of cases was still lower than before the pandemic, Mr. Rao warned that the upward momentum may not stop.
