Discussion
Personal bankruptcies are rising again – and fast.
More than 500,000 Americans filed in 2025, and that’s nearly 50% more than in 2022. Filing jumped again this spring.
Here’s what to know about bankruptcy — and what you can try before filing. Thread ⬇️
A reminder: Bankruptcy can wipe out many debts and offer a fresh start, but not everything disappears.
Child support, alimony and most taxes generally remain. Student loans can be discharged, but it’s difficult.
The “fresh start” from bankruptcy may take a while.
Research tracking people after bankruptcy found that they eventually caught up financially with their peers — but it took 15 to 25 years on most measures.
So why are filings climbing again?
Americans are dealing with incomes that haven’t kept pace with inflation and sharply higher credit card interest rates.
Before filing for bankruptcy, there are a few things you can try:
💵 Switch to cash to put a hard limit on spending
📞 Contact lenders and ask about financial hardship options
⚖️ If that’s not enough, talk to a bankruptcy attorney about your options
https://theconversation.com/personal-bankruptcy-filings-are-soaring-in-2026-signaling-growing-economic-distress-288982
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