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U.S. personal bankruptcies rise again, topping 549,577 in 2025
LendingTree analysis of U.S. Courts data shows filings climbed for a third straight year to 1,489 per day in 2025, with higher borrowing costs making credit card debt harder to repay.
Personal bankruptcies in the United States continued to increase over the past three years, driven in part by higher living costs and rising debt burdens, according to an analysis cited by Yahoo Finance. The article notes that while bankruptcy is often treated as a last resort, more households are viewing it as a practical way to manage debts that are becoming harder to carry.
The LendingTree analysis referenced in the report, using U.S. Courts bankruptcy filing data from 2021 through 2025, found that 549,577 personal bankruptcies were filed in 2025. That marked the third consecutive year of increases, and the piece translates the figure to about 1,489 filings per day in 2025.
The story attributes worsening debt dynamics to higher interest rates, which have increased the cost of carrying balances accumulated on credit cards. LendingTree chief consumer finance analyst Matt Schulz said the combination of rising debt and higher rates causes credit card balances to grow faster than many people can pay them down.
The report also highlights the credit score impact after filing. Citing research shared with NPR, Samuel Antill, an assistant professor at Harvard Business School, said most people's credit scores recover within a year of filing, even though bankruptcy can initially hurt credit scores.