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US bankruptcy filings up 12.9%, Chapter 7 growth outpacing Chapter 13

Tuesday, September 29, 2026 — 19:37:12 (UTC)

H1 2026 Analysis Shows US Bankruptcy Filings Up 12.9%, with Chapter 7 Growth Outpacing Chapter 13

New bankruptcy risk outlook highlights faster growth in Chapter 7 filings and increasing operational demands across the bankruptcy ecosystem

Sept. 29, 2026 — Burlingame, Calif. — A new analysis of national bankruptcy data for the first half of 2026 by G2 Risk Solutions (G2RS), a leading provider of bankruptcy risk solutions to a majority of US lenders and creditors, highlighted mounting financial pressure on US consumers.

One standout finding was the 15.7% increase in Chapter 7 filings during the first half of the year, which significantly outpaced the 8.4% growth in Chapter 13 filings. Chapter 7 generally provides a path for individuals to resolve eligible debts through bankruptcy, while Chapter 13 involves a repayment plan for individuals with regular income. The faster growth in Chapter 7 filings is consistent with increasing financial strain among consumers.

Additional key bankruptcy data from the first half of 2026 included:

Total filings increased 12.9% year-over-year, reaching 310,529 through June 2026.

April 2026 recorded the highest monthly filing volume since March 2020.

H2 Outlook: G2 Risk Solutions expects bankruptcy filings to remain elevated through the remainder of the year, with normal seasonal fluctuations but continued year-over-year growth.

Consumer filings remained above 50,000 per month for four consecutive months through June 2026.

G2 Risk Solutions analysis of H1 bankruptcy data

The first half of 2026 continued with a multi-quarter rise in filings that began in late 2024 and accelerated in 2025, consistent with bankruptcy trends identified in data analysis by G2RS earlier this year. As consumer filings continue to exceed 50,000 monthly filings, it highlights the persistence of financial pressure on households despite a relatively stable labor market.

“The pattern we’ve observed is holding true. This appears to be a period of sustained higher bankruptcy activity rather than a short-term spike,” said Ryan Sanders, vice president at G2 Risk Solutions. “At the same time, we aren’t seeing this against the backdrop of a recession or labor market collapse. Instead, higher filings are coinciding with the cumulative effects of increased borrowing costs, inflation, and debt servicing expenses.”

Sanders also noted that the 2026 data is a reminder that financial stress isn't always driven by one major event. “More often, it's the accumulation of many smaller increases that gradually burden a household budget. It's important to remember that behind every filing statistic is a person or family trying to navigate rising costs and changing financial circumstances.”

Operational impacts across the bankruptcy ecosystem

G2 Risk Solutions cautions that rising bankruptcy activity is affecting stakeholders across the bankruptcy system. The firm’s proprietary operational data shows that during the first half of 2026, G2RS categorized approximately 11.4 million docket records, up 11.4% from H1 2025. Bankruptcy Noticing Center (BNC) activity increased by 8.2%. Case-opening and deadline-sensitive events increased at double-digit rates, which include petition filings (11.5%), meeting notices (10.5%), and proof-of-claim deadlines (13.3%).

For stakeholder organizations, each additional filing can mean another account to monitor, new notices and docket activity to track, deadlines to manage, and additional work for bankruptcy teams. As volumes rise, the operational workload can grow faster than headline filing numbers might suggest, and the need for timely, comprehensive event coverage increases to ensure critical case developments are not missed.

G2 Risk Solutions encourages bankruptcy stakeholders to prepare for an increased baseline of bankruptcy activity along with continued growth. Recommended actions include:

Improving data visibility to fully understand bankruptcy exposure and prioritize risk-mitigating steps.

Reducing manual effort in monitoring, case administration, and servicing to minimize the potential for errors and staff burnout.

Ensuring timely, accurate information flow among stakeholders to avoid legal and regulatory exposure from not completing required actions within prescribed timeframes.

These findings are further explored in Beyond the Filing Surge: Where Bankruptcy Risk is Concentrating, a new webinar from G2 Risk Solutions. Ryan Sanders and Rochelle Blease, president of G2 Risk Solutions, are joined by Hilary Bonial, managing director of Bonial & Associates, P.C., to discuss what is behind the filing trend, how the widening gap between Chapter 7 and Chapter 13 is reshaping creditor caseloads, and why a 10% rise in filings rarely translates into only a 10% rise in operational workload. The session is available to watch on demand.

About G2 Risk Solutions

G2 Risk Solutions is the market leader in bankruptcy risk intelligence and workflow automation for financial institutions and organizations managing high-volume bankruptcy operations. With more than 30 years of expertise, 30M+ archived bankruptcies, and monitoring across more than 1B accounts, G2 Risk Solutions helps teams detect filings, monitor case activity, automate key workflows, and manage recovery with confidence. By combining high-confidence data, deep domain expertise, and purpose-built technology, G2RS helps organizations reduce compliance exposure, improve efficiency, and protect recovery from filing through resolution. For more information, visit G2RiskSolutions.com

Media Contact:

Nicole Selinger (For G2 Risk Solutions) nicole@kmprcollective.com 314-805-2165

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Source: Company press release.

Categories: Reports and research