11 March 2025
/ Scott D. Fink
Bankruptcy Filings Surge: A 23.5% Increase in 2025 Amid Economic Pressures
According to recently published data from Epiq Bankruptcy Analytics, the upward trend of bankruptcy filings continues nationwide. Total bankruptcy filings year-to-date in 2025 are up 23.5% over 2024, while total chapter 7 filings show a 19.8% increase, and chapter 13 filings show an 8.3% increase.
While many factors are potentially at play here, it is safe to assume the continued impacts of consumer price inflation, higher interest rates, and an increased reliance on credit has kept the filing rates for bankruptcy on the rise. In fact, the latest data shows that nearly 7% of subprime auto borrowers were at least 60 days behind in payments and that the number of credit card borrowers only making the minimum payment rose to a 12-year high.
All of this suggests the pace of bankruptcy filings will likely continue to increase as we move through 2025.
Our team is constantly monitoring changes in the industry. If you would like to learn more about our Bankruptcy Recovery Group or have additional questions, please contact Shareholder and Bankruptcy Recovery Group chair Scott Fink at any time.
This blog is not a solicitation for business and it is not intended to constitute legal advice on specific matters, create an attorney-client relationship or be legally binding in any way.
While many factors are potentially at play here, it is safe to assume the continued impacts of consumer price inflation, higher interest rates, and an increased reliance on credit has kept the filing rates for bankruptcy on the rise. In fact, the latest data shows that nearly 7% of subprime auto borrowers were at least 60 days behind in payments and that the number of credit card borrowers only making the minimum payment rose to a 12-year high.
All of this suggests the pace of bankruptcy filings will likely continue to increase as we move through 2025.
Our team is constantly monitoring changes in the industry. If you would like to learn more about our Bankruptcy Recovery Group or have additional questions, please contact Shareholder and Bankruptcy Recovery Group chair Scott Fink at any time.
This blog is not a solicitation for business and it is not intended to constitute legal advice on specific matters, create an attorney-client relationship or be legally binding in any way.
