Bankruptcy Filings Rose 11% in 2025: What the Year-End Numbers Say About Household Financial Stress

More Americans turned to bankruptcy in 2025 than in any year since before the pandemic. According to data released January 12, 2026, by Epiq AACER and the American Bankruptcy Institute, total bankruptcy filings in calendar year 2025 reached 565,759, an 11% increase from 508,953 in 2024 ¹. For people struggling with debt in South Florida, the numbers are a reminder that financial distress is common and that legal options exist.

The Year in Numbers

Consumer cases drove the increase. Individual and household filings totaled 533,949 in 2025, up 12% from 478,752 in 2024 ¹. Consumer Chapter 7 filings rose 15% to 332,706 ¹. Consumer Chapter 13 filings rose 6% to 200,055 ¹.

Business filings increased as well, though more slowly. Commercial filings rose 5% to 31,810, and small business Subchapter V elections within Chapter 11 rose 11% to 2,446 ¹.

Even with these increases, filings remain well below historical levels. Total filings in 2025 were still lower than the 757,816 recorded in 2019 ¹.

December Showed Acceleration

The final month of the year was especially busy. Total filings in December 2025 were 45,935, a 20% increase over December 2024 ¹. Consumer filings climbed 21% to 43,387, with Chapter 7 cases up 24% and Chapter 13 cases up 17% ¹.

Michael Hunter, Vice President of Epiq AACER, said December’s results signal momentum expected to continue into 2026 as volumes normalize toward pre-pandemic levels ¹. Amy Quackenboss, Executive Director of the American Bankruptcy Institute, pointed to elevated borrowing costs, persistent inflation and geopolitical uncertainty as stressors leading more families and businesses to seek a fresh start through bankruptcy ¹.

The Federal Courts’ Fiscal Year Data Agrees

The federal judiciary’s own statistics, which use a fiscal year ending September 30, show the same trend. Filings totaled 557,376 in the twelve months ending September 30, 2025, a 10.6% increase from 504,112 the previous year ². Non-business filings rose 10.8% to 533,337 ². By chapter, there were 344,825 Chapter 7 filings and 203,118 Chapter 13 filings in that period ².

The courts also put the recent rise in context. For over ten years the annual total kept dropping, from close to 1.6 million in the year ending September 2010 down to 380,634 in the year ending June 2022, and it has climbed every quarter after that while remaining far below historical highs ². The U.S. Courts also publish filings by county ², which allows readers to follow local trends in Miami-Dade, Broward and Palm Beach.

What the Trend Means for Individuals

Rising filing numbers do not mean bankruptcy is the right answer for every household. They do suggest that more people are reaching the point where the math no longer works: income has not kept pace with housing, insurance, credit card interest and other costs.

A few observations for anyone in that position:

• Chapter 7 and Chapter 13 serve different needs. The 2025 data shows Chapter 7 growing faster than Chapter 13 ¹, but the better fit depends on income, the equity in a home or car, whether there are missed mortgage payments, and other factors.
• Waiting can narrow the options. Lawsuits, garnishments and foreclosure timelines can move quickly once accounts are in default. Reviewing options early tends to preserve more choices.
• Filing is a legal process, not a moral judgment. More than half a million households used the bankruptcy system in 2025 ¹. It exists for exactly the kind of financial pressure many families are facing.

The Roca Law Firm represents individuals and families in Chapter 7 and Chapter 13 cases in the U.S. Bankruptcy Court for the Southern District of Florida.

Anyone in South Florida weighing their options can request a confidential consultation with The Roca Law Firm, in English or Spanish.