Bankruptcy filings in the U.S. surged 14% in the first quarter of 2026 compared to the same period last year, according to data from the American Bankruptcy Institute (ABI). The increase reflects broader economic challenges, including inflation, high interest rates, and rising consumer debt.
Core Facts
- Total bankruptcy filings rose to 150,009 in Q1 2026, up from 132,094 in Q1 2025.
- Commercial Chapter 11 filings increased 37%, while consumer Chapter 7 filings rose 17%.
Economic Pressures
Household debt reached $18.8 trillion by late 2025, with delinquency rates worsening to 4.8%. Credit card, mortgage, and student loan delinquencies all saw notable upticks amid persistent inflation and elevated interest rates. ABI Executive Director Amy Quackenboss cited "persistent inflation, high interest rates, restricted credit, and global instability" as key factors contributing to the rise in bankruptcies.
Business and Consumer Trends
- Subchapter V elections, a form of Chapter 11 designed for small businesses, rose 67% to 833 filings in Q1 2026.
- Individual Chapter 7 filings, the most common form of consumer bankruptcy, totaled 89,259, up 17% year-over-year.
- Chapter 13 filings, which allow individuals to reorganize debts while keeping assets, increased 8% to 51,962.
Expert Insights
Epiq AACER Vice President Michael Hunter noted that the acceleration in bankruptcies aligns with broader economic pressures, including household debt and worsening delinquency rates. The data underscores the financial strain on both businesses and individuals in 2026.