Update, November 6, 2026: The House bill described here, the Bankruptcy Threshold Adjustment Act (H.R. 7730), passed the House on September 16, 2026, and the Senate on September 28, 2026, and was presented to the President on November 5, 2026, according to Congress.gov. It had not yet become law as of that listing. See the follow-up article.

Bankruptcy filings in the United States climbed sharply in the first three months of 2026. According to data from Epiq AACER released by the American Bankruptcy Institute on April 6, 150,009 total bankruptcy cases were filed from January 1 through March 31, a 14 percent increase over the 132,094 filed in the first quarter of 2025 [1]. Individuals accounted for most of that growth.

Consumer filings drove the increase

Consumer filings rose 14 percent, to 141,573 in the first quarter from 124,719 a year earlier [1]. Individual Chapter 7 filings reached 89,259, up 17 percent from 76,489 [1]. Individual Chapter 13 filings, in which a debtor proposes a repayment plan, rose 8 percent to 51,962 from 47,966 [1].

March was especially active. Total filings for the month were 58,278, a 16 percent increase from March 2025, and individual filings rose 17 percent to 55,381 [1]. Individual Chapter 7 cases in March were up 20 percent, to 36,784, while individual Chapter 13 cases rose 10 percent, to 18,478 [1].

Small businesses are under pressure too. Subchapter V elections, the streamlined Chapter 11 process for small businesses, rose 67 percent in the first quarter to 833 [1], after a 91 percent year-over-year jump in February alone [2].

What is behind the numbers

Epiq AACER Vice President Michael Hunter tied the increase to broader economic pressures, pointing to household debt approaching $18.8 trillion and a late 2025 delinquency rate of 4.8 percent on outstanding balances. He noted that late payments had risen on credit cards, mortgages and student loans while inflation stayed stubborn and interest rates remained high [1]. ABI Executive Director Amy Quackenboss pointed to “persistent inflation, high interest rates, restricted credit, and global instability” as compounding the challenges facing struggling families and small businesses [1].

The release also noted pending federal legislation. Bills introduced by Sen. Chuck Grassley and Rep. Ben Cline would make a $2.75 million Chapter 13 debt ceiling for individuals permanent and eliminate the distinction between secured and unsecured debt for that calculation, while raising the Subchapter V eligibility limit to $7.5 million [1]. ABI said it supports efforts to permanently expand access to both [1]. Those bills had not become law as of the release [1].

What the trend means for Florida families

The Epiq AACER figures are national and are not broken out by state in the release [1]. Still, the pressures the release identifies, including inflation, high interest rates and rising delinquencies [1], are familiar to many South Florida households already managing high housing and insurance costs.

A rising filing count does not mean bankruptcy is the right answer for any particular family. It does suggest that more people are reaching the point where the question deserves a serious look. Several points are worth keeping in mind:

• Chapter 7 and Chapter 13 serve different needs. The data show both chapters growing, with Chapter 7 growing faster [1]. Which chapter fits depends on income, assets, the types of debt involved and goals such as keeping a home or a car.
• Waiting has costs. Late fees, collection activity and lawsuits can accumulate while a household hopes conditions improve. Understanding the options early allows a decision to be made on a family’s own timeline.
• Small business owners face separate questions. The sharp rise in Subchapter V elections [1] shows that many small business owners are also seeking relief, and personal and business debts often overlap for owners who have signed personal guarantees.

Rising filings are a signal, not a verdict. A clear-eyed review of income, expenses and debts is the best way to know whether bankruptcy, a negotiated arrangement or another approach makes sense.

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

Sources

1. First Quarter Subchapter V Small Business Filings Increase 67 Percent over Previous Year, American Bankruptcy Institute
2. Insolvency Informer: February Small Business Subchapter V Elections Increase 91 Percent over Last Year, American Bankruptcy Institute
3. H.R.7730, Bankruptcy Threshold Adjustment Act (119th Congress), bill status, Congress.gov, Library of Congress

General information as of November 6, 2026, not legal advice. Originally published at LexBrief Insights by Tony Roca, The Roca Law Firm, P.A., Miami, Florida.

Update, November 6, 2026: Congress.gov records that H.R. 7730 was formally presented to the President on November 5, 2026, following House passage on September 16 and Senate passage on September 28. As of that listing, the bill had not yet become law.

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 [1][2] 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.

Sources

1. Small Business Subchapter V Elections Increase 46% Compared to Last Year, American Bankruptcy Institute and Epiq AACER
2. Bankruptcies Rise 12.2 Percent, United States Courts
3. H.R.7730, Bankruptcy Threshold Adjustment Act (119th Congress), bill status, Congress.gov, Library of Congress

General information as of November 6, 2026, not legal advice. Originally published at LexBrief Insights by Tony Roca, The Roca Law Firm, P.A., Miami, Florida.

Update, July 24, 2026: On remand, the Fifth Circuit returned the case to the district court on July 16, 2026, and on July 20 the district court gave both sides a fresh start under the Supreme Court’s standard. It said it was strongly inclined to reject judicial estoppel and let the injury claims proceed, with any renewed estoppel motion to wait until discovery is complete.

On June 11, 2026, a unanimous U.S. Supreme Court decided Keathley v. Buddy Ayers Construction, Inc., a case about what happens when a person in bankruptcy fails to list a lawsuit or potential claim on the bankruptcy schedules [1]. The Court held that before barring the claim, courts must look at the totality of the circumstances to decide whether the omission was an honest mistake [1]. The decision matters to anyone in Chapter 7 or Chapter 13 who is injured, wronged or owed money while the case is open.

What happened in the case

Thomas Keathley and his wife filed a Chapter 13 petition in December 2019 [1]. The Bankruptcy Code requires debtors to list their property on bankruptcy schedules, including “claims against third parties, whether or not [the debtor] ha[s] filed a lawsuit or made a demand for payment,” and debtors sign those schedules under penalty of perjury [1]. In April 2020, the bankruptcy court confirmed a plan to repay 100 percent of creditors’ claims over five years [1].

In August 2021, while the case was still open, Keathley was in a car accident with a driver employed by Buddy Ayers Construction [1]. He hired a personal injury attorney and told his bankruptcy counsel he intended to sue, but neither disclosed the claim to the bankruptcy court [1]. He filed the injury lawsuit in December 2021 [1].

In March 2023, the company moved for summary judgment based on judicial estoppel, arguing that Keathley could not pursue a claim he had not disclosed in bankruptcy [1]. Keathley immediately amended his schedules and submitted affidavits saying the omission was inadvertent [1]. The district court, following Fifth Circuit precedent, ruled against him because he knew the facts behind his claim and hypothetically had a motive to conceal it, and the Fifth Circuit affirmed [1].

What the Supreme Court decided

Writing for a unanimous Court, Justice Ketanji Brown Jackson explained that judicial estoppel is an equitable doctrine meant to protect the integrity of the courts by preventing parties from deliberately changing positions [1][2]. Equity “eschews mechanical rules,” the Court said, and requires a case-by-case look at all relevant facts [1].

The Fifth Circuit’s approach failed that standard in two ways. It was too rigid, because it allowed courts to consider only whether the debtor knew the underlying facts and had a potential motive to conceal, and it was too broad, because those two circumstances will almost always be true [1]. The Court vacated the judgment and sent the case back for a fuller look [1]. It assumed, without deciding, that judicial estoppel can apply in bankruptcy and that inadvertence or mistake can be an exception [1]. Justice Thomas, joined by Justice Gorsuch, and Justice Sotomayor each wrote concurring opinions [2].

What it means for people in bankruptcy

The ruling gives debtors who make genuine mistakes a fairer hearing. It does not make disclosure optional. Keathley still spent years in litigation over a claim that could have been listed when it arose [1]. Practical lessons for anyone in a South Florida bankruptcy case:

• Disclose early and completely. The schedules ask about claims against others even if no lawsuit has been filed [1]. An accident, an injury, an insurance claim or a dispute with an employer can all count.
• Keep the bankruptcy attorney informed while the case is open. Keathley’s claim arose more than a year after his plan was confirmed [1]. Chapter 13 cases can last several years, and events during that time may need to be reported.
• Correct mistakes promptly. Keathley amended his schedules once the issue surfaced [1], and under the Court’s ruling the surrounding circumstances, including how a debtor responds, can be weighed [1].
• Tell any personal injury lawyer about the bankruptcy. Coordination between the two attorneys helps avoid the problem entirely.

Anyone in South Florida with questions about a pending or planned bankruptcy can request a confidential consultation with The Roca Law Firm, in English or Spanish.

Sources

1. Keathley v. Buddy Ayers Construction, Inc., No. 25-6 (Slip Opinion), Supreme Court of the United States
2. Keathley v. Buddy Ayers Construction, Inc., 608 U.S. ___ (2026), Justia U.S. Supreme Court Center
3. Keathley v. Buddy Ayers Construction, Inc., No. 3:21CV261 (N.D. Miss. July 20, 2026) (order on remand), FindLaw

General information as of July 24, 2026, not legal advice. Originally published at LexBrief Insights by Tony Roca, The Roca Law Firm, P.A., Miami, Florida.

Update, July 2, 2026: On June 30, 2026, the U.S. Trustee Program updated the IRS expense standards and Chapter 13 administrative expense multipliers used in the means test, effective for cases filed on or after July 15, 2026. The Florida median family income figures listed above are unchanged in the table for cases filed on or after July 15, 2026.

On March 18, 2026, the U.S. Trustee Program announced that it had updated the Census Bureau median family income data used in bankruptcy cases and that it will apply the new figures to cases filed on or after April 1, 2026 [1]. For a Florida household thinking about bankruptcy this spring, the change can affect which chapter is available and how the paperwork is completed.

What the means test does

Under the Bankruptcy Code, individual consumer debtors must pass a “means test” before they can receive Chapter 7 relief [3]. When the test shows disposable income above certain limits, the case can be challenged: the U.S. Trustee, a creditor or another interested party may ask the court to dismiss it [3]. A debtor who fails the test, or who would rather take a different route, may instead file under Chapter 13 and pay creditors over time through a court-approved plan [3].

Most individual debtors complete a version of Official Form 122. The 122A forms are used in Chapter 7 cases, and the 122C forms are used in Chapter 13 cases [3]. Some of the information on those forms, such as current monthly income, comes from the debtor’s own records. Other information, including the state median income, comes from the Census Bureau and the IRS [3].

The new Florida figures

For cases filed between April 1, 2026 and July 14, 2026, the median family income figures for Florida are [2]:

• One earner: $69,876
• Two people: $86,523
• Three people: $97,540
• Four people: $114,761

For households larger than four, $11,100 is added for each additional person [2]. The U.S. Trustee Program publishes the table in a format designed for completing Official Forms 122A-1 and 122C-1 [2].

For comparison, the four-person median in neighboring Georgia is $123,481, and in Texas it is $117,962 [2]. Florida’s figures sit below those states for a family of four, which means a Florida household’s income is measured against a lower benchmark than it would be in either of those states.

Why the timing of a filing matters

Because the new data applies by filing date, the same household can be measured against different figures depending on whether its petition is filed before or after April 1 [1]. A case filed in late March uses the prior table, while a case filed on April 1 or later uses the updated one [1][2].

The median comparison also matters in Chapter 13. The U.S. Trustee Program explains that income sets the length of a Chapter 13 plan, usually three or five years [3]. For debtors above certain income levels, the plan payment amount begins with the disposable income figure produced by the means test [3].

The means test also uses IRS expense standards and, in some cases, a Chapter 13 administrative expense multiplier for the debtor’s judicial district [3]. Those figures are published by the U.S. Trustee Program on the same means testing pages and are updated periodically [3]. Working through them correctly requires the debtor’s actual income history for the months before filing, which is why gathering pay records early helps.

Practical steps for South Florida households

Anyone in Miami-Dade, Broward or Palm Beach County weighing bankruptcy can take a few steps now:

• Collect income records for the six full months before the expected filing date, including pay stubs, benefit statements and any side income.
• Count the household accurately, since the applicable median depends on household size [2].
• Ask whether filing before or after a data update could change the analysis [1].

None of these steps commits a household to filing. They simply make an informed decision possible.

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

Sources

1. Updated Census Bureau Median Family Income Data (Spring 2026), U.S. Trustee Program, U.S. Department of Justice
2. Census Bureau Median Family Income By Family Size (Cases Filed Between April 1, 2026 and July 14, 2026, Inclusive), U.S. Trustee Program, U.S. Department of Justice
3. Means Testing, U.S. Trustee Program, U.S. Department of Justice
4. Updated Administrative Expense Multipliers & IRS Data (Spring 2026), U.S. Trustee Program, U.S. Department of Justice

General information as of July 2, 2026, not legal advice. Originally published at LexBrief Insights by Tony Roca, The Roca Law Firm, P.A., Miami, Florida.

On April 8, 2026, Chief Justice John G. Roberts, Jr. sent Congress a set of amendments to the Federal Rules of Bankruptcy Procedure that the U.S. Supreme Court has adopted [1]. The package amends Rules 1007, 2007.1, 3001, 3018, 5009, 9006, 9014 and 9017 and adds a new Rule 7043 [1]. The changes are set to take effect on December 1, 2026, and will govern cases filed after that date and, insofar as just and practicable, cases already pending [1]. The federal judiciary released the same package publicly the same day [2].

Several of the changes deal with Chapter 11 plan voting and trustee elections [1]. Others reach the everyday Chapter 7 and Chapter 13 cases that individuals and families file in the U.S. Bankruptcy Court for the Southern District of Florida.

The financial management course certificate

Most individuals in Chapter 7 or Chapter 13 must complete a course in personal financial management after filing to receive a discharge. Under amended Rule 1007(b)(7), the debtor must file a certificate of completion issued by the course provider, unless an approved provider has already notified the court that the debtor completed the course, or the debtor is not required to take one [1].

Amended Rule 5009(b) sets out a warning system for debtors who have not filed the certificate [1]:

• First notice. When 45 days pass after the petition with no certificate on file, the clerk has to warn the debtor promptly that the case may be closed with no discharge [1].
• Second notice in Chapter 7. If the certificate is still missing 90 days after the petition and no second notice has gone out, the clerk must notify the debtor that the case can be closed without a discharge unless the certificate is filed within 30 days after the notice [1].
• Second notice in Chapter 13. If the certificate is still missing once the trustee submits a final report and account, the clerk sends a second warning, and the debtor then has 60 days from that notice to file it or risk closing without a discharge [1].

The practical lesson has not changed: finishing the course promptly, and confirming that proof of completion reaches the court, protects the discharge that the whole case is designed to produce.

Proofs of claim on credit card debt

Credit card balances are often sold to debt buyers, and debtors may not recognize the name on a claim. Amended Rule 3001(c) requires that a proof of claim based on an open-end or revolving consumer-credit agreement, unless secured by real property, include a statement showing the name of the entity from which the creditor bought the account, the entity owed when the account was last used, when that last transaction and the last payment occurred, and when the account was charged off [1].

In an individual debtor’s case, a creditor must also file an itemized statement of principal, interest, fees and other charges incurred before the petition [1]. If a claim holder fails to provide the required information, the court may, after notice and a hearing, bar the holder from using that information as evidence and award other relief, including reasonable expenses and attorney’s fees caused by the failure [1]. On a party in interest’s written request, the creditor must send a copy of the underlying writing within 30 days [1].

For Chapter 13 filers, whose plans pay allowed claims over several years, these requirements give debtors and their attorneys a clearer basis to check whether a claim is accurate and owned by the party filing it.

Testimony in contested matters

Amended Rule 9014(d) provides that testimony on a disputed material factual issue in a contested matter must be taken in open court, unless a statute or rule provides otherwise [1]. For cause and with appropriate safeguards, the court may permit that testimony by contemporaneous transmission from a different location [1]. New Rule 7043 makes Federal Rule of Civil Procedure 43, the civil rule on taking testimony, applicable in adversary proceedings [1].

What happens next

The amendments reached Congress under Section 2075 of Title 28 of the U.S. Code, the statute that governs how bankruptcy rules adopted by the Supreme Court go into effect [1]. The Court’s order directs that the changes take effect on December 1, 2026 [1], and the judiciary has posted the 2026 package to Congress on its website [2]. The Chief Justice’s letters note that a blackline version with committee notes and excerpts of the rules committees’ reports accompanied the amendments [1]. Anyone whose case is open on that date should expect the new procedures to apply where just and practicable [1].

Anyone in South Florida weighing Chapter 7 or Chapter 13, or already in a case, can request a confidential consultation with The Roca Law Firm, in English or Spanish.

Sources

1. Amendments to the Federal Rules of Bankruptcy Procedure (transmittal to Congress and Order of the Court), Supreme Court of the United States
2. Congressional Rules Package - 2026, United States Courts

General information as of April 14, 2026, not legal advice. Originally published at LexBrief Insights by Tony Roca, The Roca Law Firm, P.A., Miami, Florida.

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.

Sources

1. Total Bankruptcy Filings Increase 11% in Calendar Year 2025, Epiq AACER and ABI
2. Bankruptcy Filings Increase 10.6 Percent, Administrative Office of the U.S. Courts

General information as of January 14, 2026, not legal advice. Originally published at LexBrief Insights by Tony Roca, The Roca Law Firm, P.A., Miami, Florida.