In the face of economic headwinds, the number of Americans turning to bankruptcy surged by over 14% last year, revealing a landscape where mounting medical bills, debt, and financial strain are increasingly defining the financial reality for hundreds of thousands of individuals and businesses.
Key Takeaways
- In 2023, total US bankruptcy filings reached 517,308 cases, a 14.2% increase from 452,990 in 2022
- Non-business filings in the US hit 440,172 in 2023, up 17.3% from 375,388 in 2022
- Business bankruptcy filings totaled 17,436 in 2023, a 12.1% decline from 19,866 in 2022
- In 2023, 65% of filers were aged 25-44
- Women filed 39% of individual bankruptcies in 2023, up from 35% in 2010
- Black Americans filed at 4.2 times the rate of white Americans per capita in 2022
- Chapter 7 filings dominated at 65.8% of non-business in 2023
- Chapter 13 filings totaled 159,500 in 2023, 36.2% of consumer cases
- Chapter 11 filings reached 5,668 in 2023, up 5% from 2022
- Medical debt drove 58% of Chapter 7 filings in 2023 surveys
- Credit card debt averaged $15,800 per filer, 42% of unsecured debt in 2023
- Unemployment rate above 6% correlated with 25% filing spike historically
- Delaware saw 18,402 filings in 2023, highest per capita at 18.2 per 1,000
- Southern District of Georgia led districts with 5,212 filings per 100k pop in 2023
- California Central District: 28,450 filings in 2023, down 5% YoY
Bankruptcies rose sharply last year as medical and household debts overwhelmed American consumers.
Bankruptcy Chapter Details
- Chapter 7 filings dominated at 65.8% of non-business in 2023
- Chapter 13 filings totaled 159,500 in 2023, 36.2% of consumer cases
- Chapter 11 filings reached 5,668 in 2023, up 5% from 2022
- Chapter 12 farm bankruptcies: 139 cases in 2023, down 12% from peak
- Subchapter V small business Chapter 11: 1,200 filings in 2023
- Chapter 7 liquidation cases averaged 75% dismissal rate in 2023
- Chapter 13 confirmation rate: 68.4% in 2023 across districts
- Chapter 11 reorganization success: 10.2% full repayment plans in 2023
- Average Chapter 7 case duration: 4.2 months in 2023
- Chapter 13 plans averaged $36,000 debt paid over 60 months in 2023
- Business Chapter 11 filings: 78% under $1M debt threshold in 2023
- Chapter 7 asset cases: only 2.1% had non-exempt assets in 2023
- Chapter 13 filers had median secured debt of $112,500 in 2023
- Repeat Chapter 7 within 8 years: barred for 95% of prior filers in 2023
- Chapter 11 mega-cases (> $100M): 25 filings in 2023
- Chapter 12 success rate: 42% completion in 2023
- Pro se Chapter 7: 75% of filings, 60% discharge rate in 2023
- Chapter 13 mortgage arrears average: $18,200 per case in 2023
- Subchapter V dismissals: 35% within first year in 2023
- Chapter 11 cramdown approvals: 15% of confirmed plans in 2023
- Chapter 7 trustee payouts averaged $2,500 per asset case in 2023
- Chapter 13 early dismissals: 22% before 36 months in 2023
- Cross-chapter conversions: 8,500 cases from 13 to 7 in 2023
- Chapter 11 disclosure statements approved in 85% of cases in 2023
Bankruptcy Chapter Details Interpretation
Despite dominating the bankruptcy landscape with a 75% dismissal rate, Chapter 7's 'fresh start' often feels like a swift, bare-bones escape hatch, while the more arduous Chapter 13 path sees two-thirds of debtors grinding out an average of $600 per month only to have over a third of plans crumble before completion, revealing a system where success is often just a less painful form of failure.
Demographic Profiles
- In 2023, 65% of filers were aged 25-44
- Women filed 39% of individual bankruptcies in 2023, up from 35% in 2010
- Black Americans filed at 4.2 times the rate of white Americans per capita in 2022
- Hispanic filers made up 18.7% of total filings in 2023 despite 19% population share
- Median age of Chapter 7 filers was 41.8 years in 2023
- Single filers with dependents under 18 were 28% of cases in 2023
- Veterans comprised 7.2% of bankruptcy filers in 2022, higher than 5.5% population rate
- Low-income filers (under 200% FPL) were 62% of Chapter 7 in 2023
- College-educated filers dropped to 22% in 2023 from 28% in 2007
- Rural residents filed at 1.8 per 1,000 vs 1.2 urban in 2023
- LGBTQ+ individuals overrepresented at 9% of filers vs 5.5% population in 2022 surveys
- Median income of filers was $42,500 in 2023, 55% of national median
- Unemployed filers at filing time: 14.3% in 2023 Chapter 7 cases
- Filers with medical debt as primary cause: 52% in 2023 consumer surveys
- Homeowners filed 31% of bankruptcies despite 65% ownership rate in 2023
- Self-employed filers: 8.7% of total in 2023
- Disability status among filers: 22% in 2023, vs 13% general population
- Immigrants (non-citizen) filers: 12.4% in 2023 border states data
- Gen Z (18-24) filings up 35% since 2019 to 4.2% of total in 2023
- Baby boomers (55+) stable at 25% of filings in 2023
- Married couples joint filings: 13.1% decline since 2010 to 2023
- High school or less education: 48% of filers in 2023
- Chapter 13 filers median dependents: 1.8 vs 0.9 in Chapter 7 in 2023
Demographic Profiles Interpretation
The numbers paint a stark, deeply human portrait of a nation where bankruptcy is less a story of financial mismanagement and more a predictable crisis hitting hardest at the crossroads of youth, medical bills, and systemic inequality, while leaving the college-educated and the comfortably housed relatively unscathed.
Economic Correlations
- Medical debt drove 58% of Chapter 7 filings in 2023 surveys
- Credit card debt averaged $15,800 per filer, 42% of unsecured debt in 2023
- Unemployment rate above 6% correlated with 25% filing spike historically
- Housing cost burden >30% income preceded 67% of filings in 2023
- Student loan debt >$40k in 29% of filers under 40 in 2023
- Inflation-adjusted filings rose 18% with CPI up 7% in 2023
- Median filer unsecured debt: $28,400 in 2023, up 12% from 2020
- Auto loan delinquencies >90 days predicted 15% of Chapter 13 in 2023
- Gig economy workers filed 2.5x rate of traditional employees in 2023
- Recession fears boosted filings 11% pre-2023 slowdown
- Wage stagnation <2% real growth linked to 20% filing increase 2010-2023
- Payday loan usage in 41% of filers prior to 2023 bankruptcy
- Corporate defaults up 52% correlated with small business Chapter 11 rise in 2023
- Rent burden >50% income in 35% of urban filers 2023
- Crypto losses cited in 3.2% of 2023 business filings
- Supply chain disruptions caused 14% of Chapter 11 in manufacturing 2023
- Personal savings rate <5% preceded 55% of consumer filings 2023
- Foreclosure starts up 21% linked to 18% Chapter 13 surge 2023
- Healthcare costs >$10k OOP in 48% of medical-driven bankruptcies 2023
- E-commerce debt from BNPL schemes in 12% of young filers 2023
Economic Correlations Interpretation
America’s financial safety net is being shredded by medical bills, predatory lending, and stagnant wages, leaving a mountain of debt that families can no longer outrun.
National Filing Statistics
- In 2023, total US bankruptcy filings reached 517,308 cases, a 14.2% increase from 452,990 in 2022
- Non-business filings in the US hit 440,172 in 2023, up 17.3% from 375,388 in 2022
- Business bankruptcy filings totaled 17,436 in 2023, a 12.1% decline from 19,866 in 2022
- Chapter 7 filings nationwide were 326,716 in 2023, comprising 63.2% of all filings
- Total filings peaked at 1,402,967 in 2005 during the housing crisis
- Filings dropped to a low of 400,452 in 2010 post-BAPCPA implementation
- 2020 saw 544,463 filings despite COVID-19 moratoriums, down 10% from 2019's 605,598
- Filings surged 28% in Q4 2023 to 141,000 quarter-over-quarter
- Annual filings averaged 750,000 from 2000-2010
- Post-2021, filings rebounded 15% yearly through 2023
- Consumer filings constituted 98.7% of total in 2023
- Filings per 1,000 population stood at 1.55 in 2023, up from 1.36 in 2022
- Total filings from 2010-2023 averaged 465,000 annually
- 2022 filings totaled 452,990, the lowest since 1981 excluding COVID years
- Filings increased 17% in districts with high unemployment in 2023
- Pro se filings made up 72% of consumer cases in 2023
- Joint filings accounted for 12.5% of non-business cases in 2023
- Filings rose 22% among under-35 age group in 2023
- Average filing age was 43.2 years in 2023 surveys
- Filings per capita highest in Southern districts at 2.1 per 1,000 in 2023
- Total filings in FY2021 were 414,188, down 24% from 2019
- 2019 filings reached 605,598 amid economic slowdown signals
- Filings declined 12% from 2015-2019 averaging 550,000 yearly
- Pandemic-era filings dropped 30% in 2020 Q2 due to CARES Act
- 2024 Q1 filings up 9% to 126,000 from prior year
- Historical peak filings per capita was 6.2 per 1,000 in 2005
- Filings correlated 0.85 with unemployment rates historically
- Non-white filers increased to 42% of total in 2023 from 38% in 2020
- Female primary filers rose to 38.5% in 2023
- Repeat filers comprised 11.2% of 2023 cases within 8 years of prior filing
National Filing Statistics Interpretation
The American dream took a 17% hit in 2023 as over half a million individuals, primarily navigating the legal maze alone, declared bankruptcy, suggesting the economic 'recovery' feels a lot like quicksand for the average consumer.
State and Regional Data
- Delaware saw 18,402 filings in 2023, highest per capita at 18.2 per 1,000
- Southern District of Georgia led districts with 5,212 filings per 100k pop in 2023
- California Central District: 28,450 filings in 2023, down 5% YoY
- Tennessee Western: 12.1 per 1,000 population filings in 2023
- Nevada filings: 4,850 in 2023, 1.8x national average per capita
- Alabama Northern: 9,200 filings, highest state rate at 17.5 per 1,000
- Florida Middle District: 22% increase to 15,600 filings in 2023
- Kentucky Western: 8.9 per 1,000, top 5 districts nationally 2023
- Illinois Northern: 18,100 filings amid Chicago metro decline 2023
- Mississippi Southern: 4.2 per 1,000, rural high-rate district 2023
- Georgia Middle: 7,800 filings, 16% uptick in 2023
- Texas Eastern: 11,200 cases, oil region volatility 2023
- New Jersey: statewide 9,500 filings, 10.2 per 1,000 urban rate 2023
- Arkansas Eastern: 6.1 per 1,000, consistent high filer 2023
- Louisiana Western: 5,900 filings post-hurricane recovery 2023
- Oklahoma Western: 7.2 per 1,000 energy sector impact 2023
- South Carolina: 8,400 statewide, coastal tourist debt 2023
- West Virginia Northern: 4.1 per 1,000 Appalachian decline 2023
- Indiana Northern: 9,800 filings manufacturing hub 2023
- Ohio Southern: 12,500 cases rust belt persistence 2023
- Michigan Eastern: 15,200 Detroit metro auto impact 2023
- Pennsylvania Middle: 6,700 coal region filings 2023
- Missouri Eastern: 8,900 St. Louis area 2023
- Colorado: statewide 5,200, mountain resort debt 2023
- Utah: 4,100 filings Mormon community outlier 2023
- Alaska: lowest at 0.9 per 1,000 despite high costs 2023
- New York Southern: 12,300 Wall Street contrast 2023
- Hawaii District: 2.1 per 1,000 island economics 2023
- DC: 1,800 filings federal employee stability 2023
State and Regional Data Interpretation
America’s financial distress is a bicoastal fever, but the true epidemic burns hottest where old industries have rusted, energy booms have busted, and even paradise is not immune to the sobering math of debt.
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