As the economy slows and the impacts of tariffs, interest rates, and other economic changes are felt,, Docket Alarm analysis reveals bankruptcy filings are trending upwards nationwide, with only a few parts of the country not seeing double digit increases in per capita filings.
566,696 bankruptcies were filed nationwide in 2025, a 10.9% increase compared to the 510,634 such cases filed in 2024. The analysis counts all new cases in bankruptcy courts nationwide, regardless of bankruptcy chapter.
The Southern District of Texas, home to Houston and border communities like Brownsville and Laredo, was the hardest hit, seeing a 30% increase in filings per capita. Other heavily impacted areas include Oregon and the Middle and Northern districts of Florida.
Few districts saw decreases in filings – Maine and the Northern District of Alabama saw single-percentage-point decreases in filings per capita, while Delaware saw an 18 percent decrease, potentially indicating fewer bankruptcies involving corporations headquartered in the state.
The data reveals increasing pressure on Americans nationwide, and surging energy costs found in 2026 may continue this trend going forward.