Americans considering filing for bankruptcy hits highest level since pandemic

April 19, 2025 10:47 am
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FILE-People wait in line to enter U.S. Bankruptcy Court in New York City. (Photo by Mario Tama/Getty Images)

The Brief

    • Bankruptcy filings are on the rise in 2025.
    • This year, over 140,000 bankruptcy filings were reported in the U.S.
    • Americans thinking about bankruptcy are tied to financial factors like tariffs and consumer debt. 

A new report reveals that more people are pondering filing for bankruptcy in the first half of 2025, which is the highest level since 2020.

LegalShield released its findings using its Consumer Stress Legal Index (CSLI), which the legal service provider pointed to a heightened financial strain that has become a “new normal” for American households.

RELATED: More student loan borrowers are filing for bankruptcy to offload debt

Why are bankruptcy inquiries rising?

Why you should care:

Bankruptcy filings spiked 14.2% by the end of 2024 with LegalShield inferring that inquiries by Americans are connected to concerns about new tariffs, mortgage worries, uncertainty in the housing market, consumer debt and rising interest rates.

LegalShield’s Consumer Stress Legal Index monitors roughly 150,000 calls monthly from people searching for legal assistance related to bankruptcy, foreclosure, and consumer finance.

How many bankruptcy filings are there currently in US?

By the numbers:

BankruptcyWatch.com, an online platform for automating bankruptcy operations, reported that so far in 2025 there have been 144,034 reported bankruptcy filings in the U.S. with an average of 10,288 weekly bankruptcy filings this year compared to 9,687 in 2024.

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