See how bankruptcy affects other U.S. consumers and businesses.

Whether it’s your own finances or a business you’ve helped build, making the decision to file for bankruptcy is never easy. But in many cases it’s the best option available, and when done correctly, it can give you or your company the fresh start you need to move forward instead of continuing to struggle and backslide.

The statistics below can help you understand how bankruptcy is impacting individuals, families and businesses in the U.S. today. If you’re struggling with debt and need help, call us or complete the form to the right to connect with the expert assistance you need.

Whether you need to file for personal bankruptcy or commercial bankruptcy for your business, Debt.com can help you get the fresh start you need.

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Bankruptcy filing statistics

Total number of bankruptcy filings in the third quarter of 2019 — 196,030[1]

Out of that total:[1]

  • Number of non-business filings — 190,435
  • Number of Business filings — 5,595

Bankruptcy filings per Chapter, business and personal:[1]

  • Total Chapter 7 — 120,661 
  • Total Chapter 11 — 1,614
  • Total Chapter 13 — 73,569
  • Total Other Chapters (9, 12, 15) — 186

Yearly bankruptcy trends

Fewer bankruptcies were filed in the third quarter of 2018 than were filed in 2017.[1]

  • Total number of bankruptcies filed in the third quarter of 2018 — 192,645 
  • Total number of bankruptcies filed in the third quarter of 2017 — 194,830

Bankruptcy credit report penalties

Number of years the negative item from bankruptcy will remain on your credit:[1]

  • Chapter 7 – 10 years
  • Chapter 11 – 10 years
  • Chapter 12 – 10 years
  • Chapter 13 – 7 years

Credit score impact of bankruptcy: [2]

  • A consumer with a credit score of 780 would lose 220-240 points off their credit score for a bankruptcy, for a resulting score of 540-560
  • A consumer with a credit score of 680 would lose 130-150 points off their credit score for a bankruptcy, for a resulting score of 530-550
Source:
[1] https://www.uscourts.gov/
[2] http://www.myfico.com/crediteducation/questions/credit_problem_comparison.aspx
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Article last modified on March 13, 2020. Published by Debt.com, LLC