Bankruptcy Filings Rocket Up

The American Bankruptcy Institute reports that July 2026 bankruptcy filings have significantly increased.

Individual filings (Chapters 7 and 13) jumped 11% over July 2025, with business filings (Chapter 11) going up by 24% over the same time period.

Almost 52,000 people and businesses filed during July 2026.

“July’s filings increase reflects the cumulative impact of elevated interest rates, higher target inflation, and record household debt levels that near $18.8 trillion,” said Michael Hunter, Vice President of Epiq AACER. “These numbers capture the ongoing stress from tighter credit conditions and softer consumer demand that have built over the past two years.”

“Bankruptcy serves as a critical safeguard, helping households and businesses reorganize their finances, preserve value, and move forward during periods of financial distress,” said American Bankruptcy Institute (ABI) Executive Director Amy Quackenboss. “ABI appreciates the continued efforts of Congress to permanently expand access for both distressed small businesses looking to restructure under subchapter V and for consumers looking to file under chapter 13.”