Bankruptcies aren’t just increasing — they’re turning up everywhere.
From billion-dollar corporations to small family-run businesses to everyday Americans, bankruptcy filings are climbing sharply across the U.S. this year. Large corporate bankruptcies have already reached their highest level in 15 years, underscoring the growing strain on both companies and consumers.
The surge reflects mounting financial pressure as costs rise and borrowing becomes more difficult.
“Rising costs, tighter credit conditions, and ongoing geopolitical volatility continue to exert pressure on households and businesses already facing financial strain,” said Amy Quackenboss, executive director of the American Bankruptcy Institute, earlier this month.
What makes this wave different from past downturns is its breadth. Instead of being concentrated in a handful of struggling industries, bankruptcies are spreading across nearly every corner of the economy — an “unusual” pattern, according to seasoned restructuring professionals.
A breakdown of the usual patterns
Corporate bankruptcies often follow predictable cycles, clustering within specific sectors. Robert Stark, a partner at law firm Brown Rudnick and chair of its bankruptcy and corporate restructuring practice group, noted that failures are typically “industry sticky.”
In 2022, for instance, the collapse of cryptocurrency prices triggered a wave of bankruptcies across the digital-asset space, culminating in the implosion of firms like FTX.
“That was a sticky event — a lot in the industry kind of went through bankruptcy at the same time,” Stark said. “What we have now, which is the thing that I find kind of interesting, is I don’t see as much stickiness as I’m used to seeing.”
Instead, filings are scattered across sectors.
“Bankruptcies seem to be kind of all over the place,” Stark added. He represents creditor groups in the 2025 bankruptcies of auto parts maker First Brands and fintech startup Linqto, as well as the equity committee in the Chapter 11 case of genetic-testing company 23andMe.
After three decades in the field, Stark said the current spread is unlike anything he’s seen before. “It’s unusual,” he said — “shockingly so.”
Big names, big liabilities
Several high-profile companies have already entered bankruptcy this year, including hospitality firm Sonder, Spirit Airlines, Del Monte Foods, retailer Claire’s, and Omnicare, a CVS Health subsidiary. Court filings show each carried more than $1 billion in liabilities, placing them among the largest bankruptcies of 2025.
According to S&P Global Market Intelligence, which tracks public and private companies above a certain size, bankruptcy filings reached 717 through November, surpassing last year’s total of 687.
Even without December figures, 2025 has already recorded the highest annual number of large corporate bankruptcies since 2010, when filings hit 828.
Industry data shows the industrials sector has been hit hardest so far, with 110 bankruptcy filings through November. Consumer discretionary followed with 85 filings, while healthcare ranked next with 46.
Small businesses feeling the squeeze
The bankruptcy surge extends well beyond large corporations. Small businesses are also increasingly seeking court protection as higher costs and tighter credit weigh on operations.
Firms carrying $3,024,725 or less in secured and unsecured debt can file under Subchapter V of Chapter 11, a process designed to simplify reorganization for smaller enterprises.
Data from Epiq Bankruptcy Analytics shows more than 2,300 Subchapter V filings year-to-date through mid-December, nearly 10% higher than during the same period last year.
November alone saw 223 Subchapter V filings — a 23% increase from the year before — according to the American Bankruptcy Institute, citing Epiq data.
Individuals aren’t immune
Rising financial stress is also pushing more individuals into bankruptcy.
Personal bankruptcy filings rose 8% year over year to 40,973 in November 2025, up from 37,814 in November 2024, according to data cited by the American Bankruptcy Institute.
Chapter 7 filings — often referred to as “clean slate” liquidations — jumped 11% to 25,329, compared with 22,871 a year earlier.
Chapter 13 filings, which allow individuals to repay some or all debts over time under a court-approved plan, totaled 15,558 in November 2025. That represents a 5% increase from the 14,865 filings recorded in November 2024.
“For debt-burdened families and companies, bankruptcy remains a critical pathway to restore stability and rebuild toward a stronger financial future,” Quackenboss said.
As economic pressures persist, the growing number of bankruptcies suggests that financial strain is no longer isolated — it has become a defining feature of the current economic landscape.
