US bankruptcies in 2025 have surged past the levels seen during the 2020 pandemic, reaching the highest rates in several years.
True
US bankruptcies are surging past 2020 pandemic levels
Map Shows States Where Bankruptcies Are Surging - Newsweek
Source: newsweek.com
At a glance
Verified August 19, 2025Key Evidence
Business Insider reports that US corporate bankruptcy filings surged to their highest level since 2020, with 71 companies filing last month.
businessinsider.combusinessinsider.comUS bankruptcies are surging past 2020 pandemic levels
Newsweek highlights an 11.5% increase in personal and business bankruptcy filings over the past year.
newsweek.comnewsweek.comMap Shows States Where Bankruptcies Are Surging
The American Bankruptcy Institute notes repeat corporate bankruptcies hitting their fastest pace since 2020.
abi.orgabi.orgAnalysis: Repeat Corporate Bankruptcies in U.S. Hit Fastest Pace Since 2020
The reporting
What the Evidence Shows
Multiple recent reports and data sources confirm that bankruptcy filings in the United States have increased significantly in 2025, surpassing the peak levels observed during the 2020 COVID-19 pandemic. This surge includes both corporate and personal bankruptcies, reflecting widespread financial distress across various sectors of the economy. Key factors contributing to this rise include tightening credit conditions, higher interest rates, and lingering economic challenges post-pandemic.
Corporate bankruptcies have notably reached their highest monthly filings since 2020, with over 70 companies filing recently. Additionally, repeat corporate bankruptcies are occurring at a pace not seen since the pandemic period. The increase is geographically widespread, with some states experiencing sharper rises in filings than others.
This trend signals potential shifts in the business landscape and may impact employment and credit markets going forward.
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