Bankruptcy Filings Up 11 Percent Through September 2026, and Congress Moves to Raise Chapter 13 Limits

More Americans are turning to the bankruptcy courts. According to data from Epiq AACER released with the American Bankruptcy Institute on October 8, there were 469,719 total bankruptcy filings from January 1 through September 30, 2026, an 11 percent increase over the same period in 2025 ¹. Individual filings accounted for 444,252 of those cases, also up 11 percent ¹.

The growth was strongest in Chapter 7. Individual Chapter 7 filings rose 13 percent to 282,413, while individual Chapter 13 filings rose 8 percent to 160,817 ¹. In September alone, individual filings were up 7 percent from a year earlier ¹.

What is driving the increase

Epiq AACER vice president Michael Hunter attributed the trend to “the strain of higher borrowing costs, rising household expenses, growing consumer delinquencies, and a softer job market,” and said Epiq expects filing volumes to keep climbing into 2027 ¹.

The longer view points the same way. Figures from the Administrative Office of the U.S. Courts show 608,511 bankruptcy cases filed in the 12 months ending June 30, 2026, up 12.2 percent from the prior year ². Non-business filings, which are mostly individuals and families, rose 12 percent to 581,570 ². Even so, filings remain well below historical highs: total filings peaked at nearly 1.6 million in the year ending September 2010 and fell to 380,634 in June 2022 before beginning to climb again ².

That context matters. Rising filings do not mean bankruptcy has become unusual or extreme. They reflect more households using a legal process that has always been available to people whose debts have become unmanageable.

A proposed change to Chapter 13 eligibility

The ABI release also highlighted legislation that could affect who can file Chapter 13. The bipartisan Bankruptcy Threshold Adjustment Act (H.R. 7730) passed the Senate on September 28 and, as of the October 8 release, had been sent to the president for signature ¹. According to ABI, the bill would:

• Increase the Chapter 13 debt limit to $2.75 million ¹.
• Eliminate the separate caps for secured and unsecured debt in determining Chapter 13 eligibility ¹.
• Permanently restore the Subchapter V debt limit for small businesses to $7.5 million ¹.

For many South Florida homeowners, the secured debt cap has been a practical issue. Home values and mortgage balances in Miami-Dade and Broward can push a household’s secured debt close to the existing limit, especially when a second mortgage or HELOC is involved. A single, higher combined limit would make Chapter 13 available to more families who need a plan to catch up on a mortgage. Whether and when the bill becomes law will determine its effect, so anyone near the current limits should confirm the rules in effect on the date they file.

Chapter 7 or Chapter 13

The two consumer chapters serve different needs:

• Chapter 7 is a liquidation case that can discharge many unsecured debts, such as credit cards, medical bills and personal loans, typically within a few months. Eligibility depends in part on a means test that compares household income to the Florida median.
• Chapter 13 is a repayment plan lasting three to five years. It is often used by people with regular income who want to keep a home or car while curing missed payments, or who earn too much to qualify for Chapter 7.

Both chapters trigger the automatic stay, which generally stops collection calls, lawsuits, garnishments and foreclosure sales while the case is pending.

The national numbers ¹² show that a growing number of households are reaching the point where one of these options makes sense. Individuals and families in South Florida who are weighing that decision can request a confidential consultation with The Roca Law Firm, in English or Spanish.