In response to higher rates and an unequal sector, which has led to communities reducing their costs, a recent study by Epiq AACER found that the overall consumer bankruptcy filings in the United States increased 12 % between 2024 and 2025.

The statement detailed how filings increased from 478 to 533 to 949 in 2025, and the information reveals that these debt filings were filed under Sections 7 and 11 respectively.

This means that both businesses and merchants ( Chapters 11 and 7 ), as well as regular people ( Chapters 7 and 13 ), are subject to bankruptcy filings.

According to John Rao, a senior attorney at the National Consumer Law Center," Americans typically defer filing for bankruptcy as long as they you," he said. " The circumstances that led them to proclaim bankruptcy does not necessarily be correlated with the current economic problems that are occurring. " He did not, however, reject the claim that many Americans are forced to file for bankruptcy because of rising debt on credit cards, student mortgages, health coverage, homes, or other types of cars. has reached a point where people are simply overwhelmed by the rising costs, the ever-increasing credit card balances, and other factors, Rao said. One in ten Americans may declare bankruptcy at some point in their lives, according to another study conducted by LendingTree last year. However, taking this course of action can negatively impact many people's credit scores, preventing them from making purchases or getting loans in the future.

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