After the great recession of 2007-08, since last year, the market situation has been very dynamic. Amidst this, it was observed that the previous 12 months, ending on March 31, 2025, have been quite tough on businesses, leading to an overall rise in bankruptcy cases by 13.1%. The numbers for business and non-business filings are different but quite close.
Highlights
- The country has observed an increase in bankruptcy filings as per the last data of March 31, 2025.
- These reports are released four times a year, and an overall 13.1% rise happened in last year’s cycle.
- The bankruptcy cases have been rising for a long time, but fortunately, the highs are still not record-breaking.
Increased Bankruptcy Cases Indicate Approaching Recession
The government data of the United States reported a rise in bankruptcy filings in the country as compared to the previous year till March 31, 2025. Business filing cases witness an increase of 14.7% while non-business filings rose by 13%.
A total increase of 13.1% has occurred, with a total of 529,080 cases reported this March as compared to 467,774 cases reported last March. The data on bankruptcy cases is released for four quarters every year. This reported rise is similar to the quarterly report of last December but lower than the great recession of 2007-08.
From 2010 to 2022, there has been a steady decline in the cases, but after that, the bankruptcy filings have increased. Though the highs are not record-breaking as they have been in the past, the situation is alarming, as it might be an indication of an approaching recession in the economy.
Now, the upcoming quarterly reports will unfold if there is still a rise in bankruptcy filings and if the rise is low or too significant. As of now, filings under Chapter 7 are 320, 571, lower under Chapter 11 and 12, that is, 8,844 and 259, respectively. The second highest number of filings after Chapter 7 is under Chapter 13, which is 199,130.
