Bankruptcy Filings Rise 11% Amid Higher Borrowing Costs and Inflation Strain

The American Bankruptcy Institute reported that 469,719 bankruptcy filings, covering both individuals and businesses, were filed in the first nine months of 2026, marking an 11 percent increase from the same period last year. While individuals accounted for 444,252 filings, businesses filed 25,467, an increase of 7 percent. The increase in filings, particularly among small businesses, reflects challenges amid persistent inflationary pressures and elevated borrowing costs.

The rise in filings reflects economic strain driven by higher borrowing costs, rising household expenses, and growing consumer delinquencies. The average weekly rate on a 30-year fixed-rate mortgage is currently at its highest level in roughly three years, while credit card interest rates have remained above 20 percent for more than three years.