US Bankruptcy Filings Rise to Highest Level since Pandemic

A recent report revealed a significant increase in the number of Americans considering filing for bankruptcy during the first half of 2025, reaching the highest level since 2020, the year that saw the outbreak of the COVID-19 pandemic, which left profound economic repercussions that continue to this day.

The report, issued by Legal Shield, a legal aid provider, stated that this increase reflects an increasing level of financial stress on American families, in what the company described as the "new normal" facing American citizens amid ongoing economic challenges.

The report is based on the Consumer Legal Stress Index, which monitors approximately 150,000 calls per month from individuals seeking legal advice related to bankruptcy, mortgage foreclosure, and consumer finance.

According to the data, bankruptcy filings increased by 14.2% by the end of 2024. Legal Shield indicates that this increase is linked to several factors, most notably new tariffs, rising consumer debt, rising interest rates, a volatile housing market, and concerns about mortgages.

At the same time, BankruptcyWatch.com, a website that tracks bankruptcy data, reported that the number of bankruptcies filed in the United States since the beginning of 2025 reached 144,034, with a weekly average of 10,288, compared to an average of 9,687 per week in 2024.

These figures raise widespread concern among economists and policymakers, especially as they reflect the fragility of the economic conditions of a growing number of citizens, amid the absence of radical solutions to contain the crisis or mitigate its impact on the middle and lower classes in American society.

These developments highlight the need to adopt more comprehensive and sustainable economic policies that enhance financial stability and protect consumers from falling into the cycle of bankruptcy.