Bankruptcy Statistics and the Things We Can Learn From Them

What’ll it be this time—the rent, the electricity bill, or food? There’s money enough for just one of these, and that’s not counting last year’s huge medical bill. The ambulance ride alone costs more than $1,000.

This is what real life looks like for a lot of Americans. The data on bankruptcies shows an alarming number of individuals, families, and corporations face insolvency every year. Bankruptcies have serious consequences for personal lives, businesses, and even the national economy. 

To paint a clear picture of the state of American finances, we’ve compiled a list that examines each aspect of bankruptcy and the factors that contribute to it.

Key Bankruptcy Statistics for 2025 - Editor's Choice

• 60% of people who file for bankruptcy earn less than $30,000 a year.
• Chapter 13 filings are dismissed at an 18x higher rate than Chapter 7 filings.
• Commercial Chapter 11 bankruptcy filings wer up 20% in 2024.
• In the US, there were 15.02% more bankruptcy filings in 2024 compared to the year before.

Bankruptcy Around the World

In 2024, global bankruptcies increased by 9%.

(Allianz)

The turbulence in the global economy continued during the last year, with another increase in insolvencies.

2 out of 3 countries exceeded the pre-pandemic insolvency records in 2024.

(Allianz)

This is up from 50% of countries just a year before.

North America, Netherlands and Spain had the largest increase in bankruptices in 2024.

(Allianz)

In contrast, China, South Africa and India were the three countries which saw the sharpest declines in insolvencies last year.

Canada saw a 37.1% increase in business bankruptices in 2024.

(Government of Canada)

Canada is seeing 15-year record business insolvency rates, after another terrible year for the economy.

France is expected to have the largest number of business insolvencies in Europe in 2025.

(Statista)

The most recent data forecasts that over 63 thousand business bankruptices will be declared in France, followed by United Kingdom and Germany.

Bankruptcy in the United States

48% of people who file for bankruptcy are male.

(Debt.org)

Men are slightly less likely to go bankrupt than women, who represent 52% of all bankruptices, even though this gap has been shrinking in recent years. The most common reason men go bankrupt is because they lost a job, and the most common reason women go bankrupt is divorce.

64% of people who file for bankruptcy are married.

(Debt.org)

Most debtors are married. Many file for joint bankruptcy to make the process easier. For comparison’s sake, 17% of debtors are single, 15% are divorced, and 3% are widowed.

Recent studies show that 36% of people who file for bankruptcy have only a high school education.

(Debt.org)

In addition, 20% of debtors have a bachelor’s degree or higher, and 29% have “some college education.” Those who’ve gone to college but haven’t graduated are at a particular risk because of mounting student loan debt.

60% of people who file for bankruptcy earn less than $30,000 a year according to the most recent data available.

(Debt.org)

Unsurprisingly, bankruptcy rates are the highest among those who earn the least. Stats also show that only 9.2% of those who report making more than $60,000 annually go bankrupt.

504,112 is the number of year-to-date national bankruptcy filings for 2024.

(American Bankruptcy Institute)

This represented a 15.02% increase compared to the calendar year 2023.

Commercial Chapter 11 bankruptcy filings rose 20% in 2024.

(American Bankruptcy Institute)

There were a total of 9,012 filings of this type, up from 6,473 in 2023.

There were 298,644 Chapter 7 bankruptcy filings in the calendar year 2024.

(American Bankruptcy Institute)

The numbers have risen drastically compared to previous year, when there were 248,680 total Chapter 7 bankruptices filed.

The state with the currently highest bankruptcy filing rate is Alabama.

(Statista)

The latest data shows that 346.72 out of 100,000 residents of Alabama filed for bankruptcy. On the other end of the spectrum, Alaska has the lowest rate of 25.77 per 100,000 inhabitants.

Increase in credit card interest rates was the main reason people considered filing for bankruptcy in 2024.

(The Bankruptcy Help)

This was up from 24.37% in 2023. The second biggest reason is reduced income, followed by inflation.

Beyond Bankruptcy

There’s one thing we want to make clear before we go—there is no shame in filing for bankruptcy. The social stigma attached to financial struggles shouldn’t prevent individuals or corporations from getting the help they need to pick themselves up and make a fresh start.

These statistics are troubling, but they aren’t hopeless. Within a few years you can take back the reins and recover. The process will be smoother if you take this time to learn more about managing your money to remain financially solvent.