More than half a million personal bankruptcies were filed in 2025 — nearly 50% more than in 2022.
Filings at the end of March 2026 were up almost 12% from a year earlier.
The rise follows a pandemic-era collapse. By 2022, the personal bankruptcy rate had fallen about 51% compared to 2019.
The drop happened because government interventions — stimulus checks and expanded unemployment benefits — helped people make ends meet during the pandemic downturn.
Those programs are gone now, and bankruptcy filings are climbing back up.
Despite the rise since 2023, filings are still below the pre-pandemic norm.
Those numbers also undercount financial distress, because stigma keeps many people who could benefit from filing.
, a bankruptcy economist at , says she does not interpret fluctuations in the as a terrible thing.
The process marks the end of a long struggle, not a sudden event.
The biggest benefit is that creditors have to stop harassing you once you file.
Most people's credit scores recover within a year of filing and usually improve from there.