US Bankruptcy Filings Surge

[BumRushDaShow]

Source: Newsweek

Published Dec 02, 2025 at 11:10 AM EST updated Dec 02, 2025 at 12:07 PM EST


U.S. bankruptcy filings are on the rise in the second half of 2025, signaling mounting financial pressures on both households and businesses.

According to the latest quarterly report from the Administrative Office of the U.S. Courts, bankruptcy filings rose 10.6 percent in the 12 months that ended September 30 compared to the previous year. Business filings ticked up 5.6 percent, while nonbusiness filings soared 10.8 percent, with the combined total of 557,376 marking the highest tally for the yearlong stretch since 2020.

Why It Matters

The surge in filings over the past few years has been charted by several organizations, and while the figures remain below historical highs, some view this as a sign of the greater financial strains affecting American consumers and companies in 2025.

The issue has been highlighted by the handful of large, well-known firms that have sought bankruptcy protection this year. These include Spirit Airlines, the jewelry retailer Claire's and First Brands, the auto parts company whose collapse has raised significant concerns about risky lending practices in the U.S.

Read more: https://www.newsweek.com/us-bankruptcy-filings-surge-11142283

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Link to Administrative Office of the U.S. Courts REPORT - Bankruptcy Filings Increase 10.6 Percent

[TexasBushwhacker]

1. I'm considering personal bankruptcy

I never thought I would and it causes me profound shame, but I intended to work full time until I was 70 and was laid off at 66 and 4 months in May of '23. I went ahead and started my Social Security in August of '24. I had no choice. I'd just been let go from my 3rd job in 14 months for reasons beyond my control. I've gone through what little savings I had. I've been living in a weekly motel for 9 months, hoping to find a job and move nearby, but that just hasn't happened. My mental and physical health are declining. I'm going to sell my car just to put some money in the bank and buy something that's older and cheaper.

[OldBaldy1701E]

2. You and me both.

Ten percent increase in bankruptcies, eh?

We ain't seen nuthin' yet!

[TexasBushwhacker]

3. Sadly, I think many will be family farms

Which will quickly be scooped up by large agribusinesses and investors. Families that have been farmers for generations will turn into "land leasers" AKA share croppers. You think our groceries are expensive now? You ain't seen nothing yet!

[OldBaldy1701E]

6. Yep.

I know my family does not have one anymore.

My father, who used to half-own one, ended his days working for some large corporate farming outfit because he is a farmer. (The other owner wanted to sell out and my father did not have the capital to buy him out. No buyers were interested in becoming half-owners, so he had to sell.) They were not the best to him. He finally had an accident, got a settlement, and retired. But, he was a shell of the person he was when he had his own farm.

Which is different from my case, where I had nothing, I have nothing and I will never have nothing. So, bankruptcy is not that big of a change for someone like me.

[BeyondGeography]

4. Meantime, Trump is calling 'affordability' a con job by the Democrats

https://www.usatoday.com/story/news/politics/2025/12/02/trump-cabinet-meeting-venezuela-live-updates/87566205007/#

[IronLionZion]

5. Sure sign of MAGA making our economy great again

is when they want us to blame impoverished immigrants instead of billionaires getting wealthier. Maybe they'll trickle it down to us after Mexico pays for the wall and grocery prices come down and he releases his amazing health care plan.

[kwolf68]

7. Is America great again, yet?

Asking for a friend

[wiggs]

8. So many signs that economic disaster is coming. Other than AI, any good portents? Can the very wealthy, by

themselves, sustain an economy?

[Jack Valentino]

9. Elect a bankrupt for president, and get more bankruptcies.... What a coincidence!

[Bayard]

10. I'm thinking many of these business filings are tied to tariffs

Personal bankruptcies are really going to soar when people's healthcare costs go through the roof.