U.S. Bankruptcy Filing Statistics (2026)
The rolling-year bankruptcy filing total changed 12% from its year-earlier level in 2026-Q2, according to the Administrative Office of the U.S. Courts. The Chapter 7-to-Chapter 13 filing-count ratio stood at 1.77 in the same report.
What Are the Current Bankruptcy Statistics?
U.S. consumer bankruptcy filings rose 12% year-over-year as of 2026-Q2, the 9th consecutive quarter of annual increases. Chapter 7 liquidation filings changed 14.7%, while Chapter 13 repayment plans changed 7.6%. The Wipeout Ratio — Chapter 7-to-Chapter 13 filings — stands at 1.77, and the all-loan charge-off rate is 0.57%.
These are rolling-year filing-count comparisons from Administrative Office of the U.S. Courts Table F-2. They describe how many cases were filed under each chapter, but they do not establish filers' income, assets, motives, eligibility, or case outcomes. The American Distress Index currently reads 43.8 (Typical). On average, its inputs sit higher than in 44% of their own quarterly histories. See the full discharge and means test definitions.
At a Glance
The American Distress Index currently reads 43.8 (Typical). On average, its inputs sit higher than in 44% of their own quarterly histories. Bankruptcy filings and chapter composition provide separate legal-system context, not a causal confirmation of the ADI. The filing data cannot identify why a case was filed or connect an individual filing to savings, delinquency, servicer conduct, or another ADI input.
How Did the Rolling-Year Filing Total Change?
The rolling-year bankruptcy filing total changed 12% from its year-earlier level in 2026-Q2, extending the 9th consecutive quarter of annual increases.
This series is a year-over-year rate of change, so a larger positive reading means the rolling-year total was farther above its year-earlier comparison; it is not a direct measure of filing levels or acceleration. Table F-2 does not identify the causes of the change.
Bankruptcy Filings Year-over-Year Change (%)
Source: Administrative Office of the U.S. Courts, Table F-2.
Full data and trend: Bankruptcy Filings indicator page
Are More People Filing Chapter 7 or Chapter 13?
Rolling-year Chapter 7 filings changed 14.7% from their year-earlier level in 2026-Q2. Rolling-year Chapter 13 filings changed 7.6% over the same comparison period.
In the immediately preceding report, the Chapter 7 year-over-year change was 15.3% and the Chapter 13 change was 6.3%. That means the reported Chapter 7 comparison moved down while the Chapter 13 comparison moved up. Those filing-count changes do not establish a preference for either chapter or reveal filers' income, assets, motives, eligibility, or plan feasibility.
Chapter 7 and Chapter 13 Filings YoY Change (%)
Source: Administrative Office of the U.S. Courts, Table F-2.
Full data: Chapter 7 | Chapter 13 indicator pages
What Does the Chapter 7-to-13 Ratio Tell Us?
The ratio of Chapter 7 to Chapter 13 filings — what we call The Wipeout Ratio — stood at 1.77 in 2026-Q2. This means Table F-2 recorded about 1.8 Chapter 7 filings for every Chapter 13 filing.
The observed series low was 1.38 in 2023. The ratio is a descriptive comparison of filing counts. A change in it does not, by itself, establish income, assets, motive, eligibility, case outcome, or the cause of the chapter composition.
Because neither a higher nor a lower ratio has a universal distress interpretation, this page does not label the ratio's movement as favorable or adverse. The chapter counts should be read alongside, not as proof of, other household-finance measures.
Chapter 7-to-Chapter 13 Filing Ratio
Source: Administrative Office of the U.S. Courts, Table F-2.
Full data and trend: The Wipeout Ratio indicator page
How Much Debt Are Banks Writing Off?
The charge-off rate on all loans and leases at commercial banks was 0.57% in 2026-Q1, according to the Board of Governors of the Federal Reserve System via FRED. A charge-off records a bank's accounting recognition that a loan balance is unlikely to be collected; it does not determine a borrower's future financial outcome.
The rate is above the post-2020 trough of 0.19% and the pre-pandemic comparison of 0.48%, while remaining below the observed series peak of 3.14% in 2009. The latest reading is lower than the immediately preceding quarter. For the full cross-loan-type view, see the default rates comparison hub.
Charge-Off Rate on All Loans (All Commercial Banks)
Source: Board of Governors of the Federal Reserve System via FRED (CORALACBN).
Full data and trend: Charge-Off Rate on All Loans indicator page
Data Sources and Methodology
Administrative Office of the U.S. Courts
Table F-2 reports rolling 12-month bankruptcy filing counts by chapter at quarterly endpoints. The year-over-year series compare consecutive annual windows, and the Wipeout Ratio divides the Chapter 7 count by the Chapter 13 count.
Board of Governors of the Federal Reserve System / FRED
All-loan charge-off rate (CORALACBN) measures debt permanently written off by commercial banks as uncollectable. It is a quarterly accounting series sourced from bank call reports and is separate from the court filing series.
American Distress Index
Bankruptcy filings and charge-off rates are separate context within the ADI framework. Neither series proves that another ADI input caused a filing or charge-off. Full methodology is on the methodology page.
Frequently Asked Questions
How many bankruptcies are filed per year in the United States?
The American Bankruptcy Institute and the Administrative Office of the U.S. Courts reported approximately 480,000-500,000 consumer bankruptcy cases for calendar year 2025 (figure published February 2026). The rolling-year filing total was above its year-earlier level for 9 consecutive quarterly reports.
What is the difference between Chapter 7 and Chapter 13 bankruptcy?
Chapter 7 generally provides liquidation and discharge subject to eligibility and exemptions. Chapter 13 generally uses a court-supervised repayment plan. Chapter 7 filings changed 14.7% year-over-year in 2026-Q2, while Chapter 13 changed 7.6%. Filing counts alone do not establish a filer's income, assets, motive, eligibility, or case outcome.
Is bankruptcy increasing in 2026?
The Administrative Office of the U.S. Courts reported that the rolling-year filing total changed 12% from its year-earlier level as of 2026-Q2, marking the 9th consecutive quarter of annual increases. The filing series does not by itself identify the causes of that change.
What is the Wipeout Ratio?
The Wipeout Ratio is American Default Research's name for the ratio of Chapter 7 filing counts to Chapter 13 filing counts in Administrative Office of the U.S. Courts Table F-2. It stood at 1.77 in 2026-Q2, or about 1.8 Chapter 7 filings per Chapter 13 filing. The ratio is descriptive and does not establish income, assets, motive, eligibility, or future outcomes.
How does bankruptcy connect to the American Distress Index?
Bankruptcy filings provide separate legal-system context for the ADI's Default & Legal domain. The ADI currently reads 43.8 (Typical). On average, its inputs sit higher than in 44% of their own quarterly histories. The filing series and chapter ratio do not prove a causal path from the ADI's other inputs to bankruptcy.