"2026 bankruptcy statistics" can mean different things. It might be 2025 calendar-year data released in 2026, or a rolling 12-month period ending in 2026. This article labels every figure by period, filing type, and source, drawing mainly on the Administrative Office of the U.S. Courts (AOUSC).
Key Takeaways
- Total filings rose 12.2% to 608,511 in the 12 months ending June 30, 2026.
- Business filings grew faster (+16.9%) but remain under 5% of all cases.
- Chapter 7 dominates volume; Chapter 11 grew fastest at +22.7%.
- Alabama's filing rate is roughly 10 times Alaska's, so raw totals mislead.
What the Latest 2026 Bankruptcy Filing Data Shows
Reporting periods, explained
AOUSC reports filings quarterly for rolling 12-month periods ending March 31, June 30, September 30, and December 31. "Year ending June 30" covers July 1 through June 30. A calendar-year total is simply the 12 months ending December 31. Never compare a monthly or three-month count directly with a 12-month total.
The latest numbers
According to AOUSC's July release, filings for the 12 months ending June 30, 2026 totaled 608,511, versus 542,529 a year earlier. That is an official increase of 12.2%.
Multi-year comparison
Calendar-year cases commenced, per U.S. Courts:
| Calendar year | Cases | Year-over-year change |
|---|---|---|
| 2019 | 774,940 | - |
| 2020 | 544,463 | -29.7% |
| 2021 | 413,616 | -24.0% |
| 2022 | 387,721 | -6.3% |
| 2023 | 452,990 | +16.8% |
| 2024 | 517,308 | - |
| 2025 | 574,314 | +11.0% |
The pandemic-era drop bottomed in 2022, not 2021. Filings then rebounded for three straight years.
Historical perspective
Context helps. The 12 months ending December 31, 2010 had 1,593,081 cases, a post-2005 high. Today's total is well below that level, and nothing here implies a return to peak levels.
Limits of the totals
- AOUSC counts cases, not people. A joint petition by spouses is one case.
- The database is continually updated, so current values can differ from earlier releases.
- The CARES Act temporarily raised the Subchapter V debt threshold through March 27, 2022. That was an eligibility change, and AOUSC does not estimate its effect on total filings.
- Totals ignore population growth and say nothing about case outcomes.
Business Versus Non-Business Bankruptcy Filings
How courts classify filings
A case is "business" when the debtor is a corporation or partnership, or when debt related to operating a business predominates. "Nonbusiness" covers consumer debt and other non-business debt. It is a classification of debt, not company size. An individual with mostly personal debt who ran a small side business may appear as nonbusiness.
Latest counts
For the 12 months ending June 30, 2026 versus June 30, 2025:
| Category | 2026 | 2025 | Change |
|---|---|---|---|
| Business | 26,941 | 23,043 | +16.9% |
| Nonbusiness | 581,570 | 519,486 | +12.0% |
| Total | 608,511 | 542,529 | +12.2% |
Business filings are about 4.4% of the total, calculated from these figures. Consumer cases drive the headline number. Business filings are a better lens on corporate distress, even though they are small in volume.
A filing is not the same as distress
Many distressed companies never file. Moody's reports roughly 65% of 2025 corporate defaults were distressed restructurings, including workouts and other non-bankruptcy events, according to Moody's analysis.
Exchange offers, liability management exercises, receiverships, and assignments for the benefit of creditors can all happen without a court petition. Court counts therefore understate total distress.
Large-company and small-business signals
Other trackers use different definitions:
- S&P Global Market Intelligence counted 72 large-company filings in June 2026, one of its highest monthly totals since 2020
- S&P's April 2026 count was 50, down from 70 in March, with industrials and consumer discretionary leading at 61 combined filings through April
- Epiq AACER reported 2,442 Subchapter V elections in January through September 2026, up 46% from 1,672
S&P's series covers public-debt companies with at least $2 million in assets or liabilities, and private companies with at least $10 million. These series are not interchangeable with AOUSC counts.
What it means for professionals
Rising business filings point to more work for restructuring counsel and advisors, and more counterparty exposure for lenders, suppliers, and credit teams. They do not predict where the economy goes next.
Bankruptcy Filings by Chapter
What each chapter does
- Chapter 7: liquidation, with a trustee selling assets.
- Chapter 11: reorganization, mostly used by businesses.
- Chapter 12: debt adjustment for family farmers and family fishermen with regular annual income.
- Chapter 13: an individual repayment plan over three to five years.
Latest chapter totals
AOUSC Table F-2, 12 months ending June 30, 2026 versus 2025 (changes calculated from displayed counts):
| Chapter | 2026 | 2025 | Change |
|---|---|---|---|
| 7 | 382,161 | 333,321 | +14.7% |
| 11 | 10,320 | 8,408 | +22.7% |
| 12 | 336 | 282 | +19.1% |
| 13 | 215,490 | 200,290 | +7.6% |
Why the patterns differ
Chapter 7 dominates because most consumer filers seek liquidation and discharge, while Chapter 13 captures repayment-plan cases. Chapter 11 volume is small, yet it matters most for corporate restructuring analysis.
Business and nonbusiness splits differ sharply:
- Chapter 11: 9,766 business versus 554 nonbusiness cases.
- Chapter 7: 15,298 business versus 366,863 nonbusiness.
- Chapter 13: 1,337 business versus 214,153 nonbusiness.
A business Chapter 7 means something very different from a consumer one. Chapter 12 is not split by business status in Table F-2, so those business and nonbusiness comparisons stop at Chapters 7, 11, and 13. Its debt limits are $12,562,250 for a family farmer and $2,568,000 for a family fisherman, per the U.S. Courts guide.
What volume does not show
Filing counts say nothing about whether a case ended in discharge, confirmed plan, liquidation, dismissal, or a repeat filing. Outcome-level data, such as AOUSC's BAPCPA Table 6 on Chapter 13 dismissals and completions, needs the right denominator before anyone calls it a success rate.
Geographic and Historical Context
State filing rates
The largest raw total is not the highest filing intensity. These rates normalize 12-month cases (ending June 30, 2026) per 100,000 residents, using Census July 1, 2025 estimates.
| State | Cases | Population | Per 100,000 |
|---|---|---|---|
| Alabama (highest rate) | 21,688 | 5,193,088 | 417.6 |
| Florida | 49,338 | 23,462,518 | 210.3 |
| California (highest total) | 58,111 | 39,355,309 | 147.7 |
| Texas | 42,229 | 31,709,821 | 133.2 |
| Alaska (lowest rate) | 306 | 737,270 | 41.5 |
California leads in cases, yet Alabama's rate is nearly three times higher. Local economics, household debt, industry mix, exemptions, and court practices may all play a part. The data does not establish which factor drives the gaps, so single-cause explanations are unreliable.
Historical timeline
- October 17, 2005: the Bankruptcy Abuse Prevention and Consumer Protection Act (signed April 2005) took effect. It added a means test and made Chapter 7 harder to use.
- 2010: filings hit 1,593,081 in the 12 months ending December 31, following the Great Recession.
- 2020-2022: filings fell from 774,940 to 387,721. U.S. Courts attributed the 2021 June-ending decline mainly to COVID-19.
- 2023-2025: filings rebounded to 452,990, then 517,308, then 574,314.
How to Interpret 2026 Bankruptcy Statistics
Leading versus lagging signals
Filings lag. Missed payments, covenant issues, liquidity pressure, litigation, and distressed exchanges usually come first. Court outcomes and recoveries come later.
Moody's finds about one in four soft credit events ended in a hard default, but that is not a forecast of future court filings. Rising filings also coincide with financial pressure without proving a cause. Avoid unsupported economic forecasts.
Metrics to read beside the count
- Debtor assets and liabilities
- Industry and court district
- Chapter and secured versus unsecured claims
- Advisor involvement, first-day motions, and plan milestones
- Dismissals, emergence, liquidation, and recoveries
Methodology note
Validate figures before publishing:
- Confirm the reporting period (calendar year, rolling 12 months, or year-to-date).
- Match definitions: AOUSC cases, S&P large-company filings, Epiq counts, and Moody's defaults measure different things.
- Check the publication date, since AOUSC tables get revised.
- Cross-check against court dockets and historical datasets.
Where BankruptcyData fits
BankruptcyData helps law firms, investors, advisors, credit teams, and researchers monitor U.S. filings alongside distress signals, court activity, stakeholders, restructuring timelines, and outcomes. Access comes through the platform, data delivery, or API integrations.
Its archive holds 600k+ records across 45+ years. Its quarterly reports, such as the 3Q26 activity report published October 13, 2026, break out public, PE-sponsored, and private-lending-funded companies.
Frequently Asked Questions
What percentage of Americans have ever filed bankruptcy?
No current, credible lifetime figure with a clear person-versus-household basis is readily available. Annual court filings cannot substitute for a lifetime estimate. Check the Federal Reserve's 2025 Survey of Consumer Finances for related data.
Can a business survive Chapter 7 bankruptcy?
Chapter 7 is liquidation, and a corporation or partnership receives no discharge under 11 U.S.C. §727(a)(1). Survival may depend on structure, asset sales, or successor operations. Consult a bankruptcy attorney.
What happens to employees if a company declares bankruptcy?
In Chapter 7, operations typically end and layoffs follow; in Chapter 11, they often continue. Wage and benefit priority claims are capped at $17,150 per employee for cases filed on or after April 1, 2025. WARN notice rules may still apply.
Does bankrupting an LLC affect you personally?
Generally an LLC is separate from its owners. Exceptions include personal guarantees, commingled assets, fraud, and veil-piercing claims, which vary by state. This is general information, not legal advice.
What debts cannot be discharged in bankruptcy?
Under 11 U.S.C. §523, common examples include certain taxes, domestic support obligations, qualifying student loans (subject to undue hardship), and debts from fraud. Treatment varies by case.
How long does a Chapter 7 bankruptcy affect your credit?
The FTC says Chapter 7 can stay on a credit report for 10 years from filing. Rebuilding often starts sooner. The CFPB points to on-time payments and low credit utilization.
