The number of individuals filing for bankruptcy has significantly increased in 2025, reflecting growing financial pressures and pessimism among Americans about their economic security, the American Bankruptcy Institute (ABI) reports. According to a report from the ABI, there were 249,152 individual Chapter 7 bankruptcy filings during the first nine months of 2025. This represents a 15% increase over the 216,773 filed in the same period in 2024.
Business bankruptcy filings also increased in 2025. The Administrative Office for the United States Bankruptcy Court reports that business filings rose 4.5%, from 22,060 to 23,043 in the year ending June 30, 2025. Non-business bankruptcy filings rose 11.8% to 519,486, compared with 464,553 in the previous year.
If you own a business and extend credit to your customers, you have certain rights as a creditor (whether as a secured creditor or unsecured creditor) under the Bankruptcy Code. Exercising certain creditor’s rights pre-bankruptcy defines how your claim will be treated during a bankruptcy case. All collection efforts must stop once the debtor files for bankruptcy protection. Navigating through a bankruptcy case and affirmatively protecting your rights as a creditor in a bankruptcy case is complicated. Our firm offers experienced attorneys that focus on creditor’s rights, including pre-bankruptcy strategies, collection of unpaid receivables and protection of creditor’s right during a bankruptcy case.
You may contact me at afox@capehart.com to discuss methods to improve and protect your rights as a creditor should your customer experience financial hardship or in the event you received notice a customer has filed for bankruptcy protection.