Chapter 7 Individual Bankruptcy Filings Jump 15 Percent in First 9 Months of 2025

There are also growing concerns about rising credit stress among Americans.
Chapter 7 Individual Bankruptcy Filings Jump 15 Percent in First 9 Months of 2025
A person arrives at the U.S. District Bankruptcy Court for the Southern District of New York, on Jan. 9, 2020. Brendan McDermid/Reuters
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A total of 249,152 individual Chapter 7 bankruptcy filings were made in the first nine months of this year in the United States, which is a 15 percent jump compared to the same period last year, the American Bankruptcy Institute (ABI) said in an Oct. 3 statement.

Chapter 7 bankruptcy, also known as liquidation bankruptcy, involves a court-appointed trustee selling off an individual’s nonexempt assets to pay off creditors. It can discharge certain debts, with the individual no longer obliged to pay them.

Naveen Athrappully
Naveen Athrappully
Reporter
Naveen Athrappully is a news reporter covering business and world events at The Epoch Times.