Legal Filings

Chapter 7 Bankruptcy Filings (YoY % Change)

20.1% — up from 8.3% a year ago, all qualifying debt erased because there's nothing left

What is the current Chapter 7 Bankruptcy Filings (YoY % Change)?

CHAPTER 7 BANKRUPTCY FILINGS (YOY % CHANGE)
20.1% ↑ Worsening
Chapter 7 filings up 20.1% YoY in FY2024 — rebounding from p
One year ago
8.3% ↑ Worsening
up 11.8 points since Q3 2023

Chapter 7 bankruptcy filings — the liquidation type where debtors surrender assets to eliminate debt — rose 20.1% year-over-year in the latest reading. Chapter 7 is the 'last resort' bankruptcy for households with no repayment capacity, making its growth a signal of severe financial distress beyond what loan modifications or payment plans can address. Source: American Bankruptcy Institute / Epiq.

Chapter 7 filings up 20.1% YoY in FY2024 — rebounding from pandemic lows

Filing counts recovering toward pre-pandemic levels after historic lows in 2021-2022.

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How has Chapter 7 Bankruptcy Filings (YoY % Change) changed over time?

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Chapter 7 Bankruptcy Filings (YoY % Change) over time
Chapter 7 Bankruptcy Filings (YoY % Change), percent
Chapter 7 Bankruptcy Filings (YoY % Change)
Historical data
Quarterly · Computed from U.S. Courts Bankruptcy Statistics
Period Value YoY Change
Q3 2024 20.1% +11.8 pts
Q3 2023 8.3% +34.3 pts
Q3 2022 -26% −1.9 pts
Q3 2021 -24.1% −9.5 pts
Q3 2020 -14.6% −14.9 pts
Q3 2019 0.3%

Frequently Asked Questions

How fast are Chapter 7 filings growing?

Chapter 7 bankruptcy filings increased 20.1% year-over-year in the latest data, indicating accelerating financial distress among households with no ability to repay debts.

What is Chapter 7 bankruptcy?

Chapter 7 is liquidation bankruptcy — debtors surrender non-exempt assets and most debts are discharged. It is chosen by households too financially distressed to enter a repayment plan (Chapter 13).

Where does this data come from?

Published by the American Bankruptcy Institute based on Epiq court filing data, tracked monthly.

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Why does Chapter 7 Bankruptcy Filings (YoY % Change) matter?

Chapter 7 Bankruptcy Filings (YoY % Change) is one of 91 indicators in the American Distress Index's legal filings layer — the signal that predicted the 2008 crisis two years before delinquency data confirmed it.
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