Rising debt, stagnant wages, and inflation have pushed many Americans to seek financial relief through bankruptcy. Which states have the most bankruptcy filings in 2025?
In 2025, states like Alabama, Georgia, and Tennessee have the highest bankruptcy filings per capita, each exceeding 450 filings per 100,000 residents.
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FAQs About Bankruptcy Filings by State
Which state has the most bankruptcy filings per capita?
Alabama leads the U.S. in per capita bankruptcy filings, with over 520 cases per 100,000 residents.
How many bankruptcies were filed in 2025?
Roughly 740,000 total bankruptcy filings occurred across the United States in 2025.
Is bankruptcy going up or down nationally?
Bankruptcy filings declined from 2015 to 2023 but began increasing again in 2024 and 2025.
Which type of bankruptcy is most common?
Chapter 7 is the most common form, used in approximately 2 out of every 3 bankruptcy cases.
Why do Southern states rank highest in bankruptcy?
States like Alabama and Georgia have fewer debtor protections and higher collection activity, increasing pressure on struggling households.