Are More People Filing for Bankruptcy in 2026?
Bankruptcy filings are rising again across the United States, and many individuals and families are feeling the pressure of higher interest rates, credit card balances, and everyday expenses.
Recent data shows that total bankruptcy filings in January 2026 increased about 10% compared to the same time last year, with Capítulo 7 filings rising even more. These trends suggest that more people are turning to bankruptcy as a tool to regain financial stability.
Why filings are increasing
Several economic factors are contributing to the rise in bankruptcy cases:
- Higher credit card interest rates
- Increased cost of living
- Mortgage and rent pressures
- Medical and unexpected expenses
- Business slowdowns in certain industries
Many people try to manage their debts for months or even years before considering bankruptcy. By the time they explore their options, they are often dealing with collection calls, lawsuits, or wage garnishments.
Bankruptcy is a legal tool, not a failure
Bankruptcy exists to give honest individuals and businesses a chance to reset financially. It can:
- Stop collection calls and lawsuits
- Eliminate certain unsecured debts
- Provide a structured repayment plan
- Help protect important assets
For many people, it becomes the first real opportunity to move forward without overwhelming debt.
Common options for individuals
The two most common types of consumer bankruptcy are:
Chapter 7:
Often called a “fresh start” bankruptcy, Capítulo 7 can eliminate qualifying unsecured debts such as credit cards and medical bills.
Chapter 13:
This option allows you to create a manageable repayment plan over three to five years, often helping people keep their homes or vehicles.
When to speak with a bankruptcy attorney
If you are experiencing any of the following, it may be time to explore your options:
- You’re using credit cards to pay basic expenses
- You’re behind on mortgage or car payments
- Creditors are calling daily
- You’ve been sued or threatened with wage garnishment
A consultation can help you understand your options and determine whether bankruptcy is the right path.
Alexis Garcia Legal helps individuals and small business owners in Miami navigate bankruptcy with clarity, discretion, and practical guidance.
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