The Wipeout Ratio
Ratio of Chapter 7 liquidation to Chapter 13 reorganization filings
What is the current The Wipeout Ratio?
The ratio of Chapter 7 to Chapter 13 filings was 1.8 for the rolling-year period ending Q2 2026. The ratio describes filing composition and does not establish filers' motives, income, assets, repayment capacity, or case outcomes. Source: Administrative Office of the U.S. Courts, Table F-2.
The Chapter 7-to-Chapter 13 filing ratio was 1.8 for the rolling-year period ending Q2 2026.
Administrative Office of the U.S. Courts Table F-2 reports rolling-year filing totals by chapter. Dividing the Chapter 7 total by the Chapter 13 total produces 1.8 for Q2 2026.
The ratio describes filing composition, not household condition. It does not establish why a filer used Chapter 7 or Chapter 13, whether a repayment plan was feasible, or how filers' income, assets, debts, or case outcomes changed.
The ratio is descriptive and bidirectional in the direction inventory. A forecast or claim about household causes would require a separate model or linked case-level evidence; Table F-2 alone supports neither.
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How has The Wipeout Ratio changed over time?
Most affected counties
Counties with the highest default and legal scores in the County Distress Index.
Explore all 3,144 counties →| Period | Value | YoY Change |
|---|---|---|
| Q2 2026 | 1.77 | +0.11 |
| Q1 2026 | 1.75 | +0.14 |
| Q4 2025 | 1.72 | +0.15 |
| Q3 2025 | 1.7 | +0.18 |
| Q2 2025 | 1.66 | +0.18 |
| Q1 2025 | 1.61 | +0.16 |
| Q4 2024 | 1.57 | +0.15 |
| Q3 2024 | 1.52 | +0.12 |
| Q2 2024 | 1.48 | +0.10 |
| Q1 2024 | 1.45 | — |
| Q4 2023 | 1.42 | — |
| Q3 2023 | 1.4 | — |
Frequently Asked Questions
What is the Chapter 7 to Chapter 13 bankruptcy ratio?
The ratio was 1.8 for the rolling-year period ending Q2 2026. It divides the Chapter 7 filing total by the Chapter 13 filing total for the same reporting window.
What is the difference between Chapter 7 and Chapter 13 bankruptcy?
Chapter 7 is the liquidation chapter of the Bankruptcy Code; a trustee may liquidate non-exempt assets and eligible debts may be discharged. Chapter 13 provides a court-supervised repayment process. Eligibility and outcomes depend on facts not contained in Table F-2.
Why is a rising ratio significant?
A change in the ratio shows that the mix of Chapter 7 and Chapter 13 filings changed. It does not by itself establish a change in filers' income, debts, financial condition, or reasons for filing.
What does the wipeout ratio predict?
This ratio is descriptive, not a prediction. Table F-2 reports filed cases by chapter; a forecast would require a separate model with a stated horizon, vintage, assumptions, and uncertainty.
Where does the Chapter 7 vs. Chapter 13 data come from?
The Administrative Office of the U.S. Courts publishes Table F-2 quarterly. American Default Research computes the ratio from Chapter 7 and Chapter 13 rolling-year filing totals for the same quarter end.
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