U.S. bankruptcies have steadily increased since reaching a low in 2022, with both personal and business filings trending higher. While a growing number of companies are declaring bankruptcy, the U.S. has also seen strong business formation activity, suggesting that new firms are continuing to emerge as others exit the market. Some observers view this as an early sign of economic disruption from emerging technologies such as AI, though the long-term impact remains uncertain. More concerning is the rise in non-business bankruptcies which reached 549,577 in 2025, indicating that a growing number of households are facing financial stress and struggling to keep up with their obligations.
This graph was produced by Lucas Juery, CFA, CFPⓇ and is not intended to provide financial advice.
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