US Bankruptcies Surge Across Multiple Sectors

Bankruptcies are piling up across the US this year, affecting corporate giants, mom-and-pop shops, and everyday individuals. Large corporate bankruptcies have hit their highest level in 15 years, with 717 filings recorded through November.

Unlike past downturns, this wave appears to be hitting nearly every corner of the economy. The surge highlights growing financial pressures facing consumers and companies as costs climb amid a tougher borrowing environment.

Small business and personal filings have also increased significantly, creating a broad financial distress pattern across all sectors.

Large corporate bankruptcies have reached their highest level in 15 years. According to data from S&P Global Market Intelligence, bankruptcy filings climbed to 717 through November, topping last year's tally of 687.

Even without December figures, 2025 has already logged the highest annual count for large corporate bankruptcies since 2010, when filings totaled 828.

Major corporate bankruptcies this year have included:

• Hospitality company Sonder
• Spirit Airlines
• Del Monte Foods
• Retailer Claire's
• CVS Health subsidiary Omnicare

Each of these companies listed more than $1 billion in liabilities in court filings, placing them among the largest bankruptcies of 2025.

The current bankruptcy wave is striking economists and attorneys because it is hitting nearly every sector simultaneously. Typically, corporate failures tend to be industry sticky, meaning they cluster within the same sectors.

In 2022, for example, there was the "big crypto winter" culminating in a string of cryptocurrency firm bankruptcies, including Sam Bankman-Fried's FTX. That was a sticky event where a lot in the industry went through bankruptcy at the same time.

However, the current pattern is different. Robert Stark, a partner at the law firm Brown Rudnick, noted that he doesn't see as much stickiness as he is used to seeing. He represents creditor groups in the 2025 bankruptcies of auto parts company First Brands and fintech startup Linqto, as well as the equity committee in the Chapter 11 case of genetic testing company 23andMe.

Stark called the broad smattering of industries "unusual" in his 30 years of experience and "shockingly so." He stated, "Bankruptcies seem to be kind of all over the place."

Data from the intelligence firm shows that the industrials sector was the most distressed through November, with 110 companies filing for bankruptcy.

The breakdown of filings by sector includes:

1. Industrials: 110 companies
2. Consumer discretionary: 85 companies
3. Healthcare: 46 companies

This wide distribution confirms the observation that the financial strain is not limited to one specific area of the economy but is affecting a broad cross-section of industries.

The spike in bankruptcies extends well beyond the corporate sphere. An increasing number of small businesses and individuals are also filing for bankruptcy.

Small Business Bankruptcies

Small businesses carrying $3,024,725 or less in secured and unsecured debt have the option to file for bankruptcy under Subchapter V of Chapter 11. This offers a more streamlined reorganization process.

Data from Epiq Bankruptcy Analytics shows Subchapter V filings at more than 2,300 year-to-date through mid-December. This represents a nearly 10% increase from the same period last year.

In November alone, Subchapter V bankruptcy filings totaled 223—a 23% bump from the previous year.

Personal Bankruptcies

Individual bankruptcy filings saw an 8% jump to 40,973 in November 2025, up from 37,814 filings in November 2024.

Specifically:

• Chapter 7 filings (liquidation): 25,329, up 11%
• Chapter 13 filings (wage earner's plan): 15,558, up 5%

Financial experts attribute the surge to multiple converging factors. Amy Quackenboss, the executive director at the American Bankruptcy Institute, identified the primary drivers.

She stated: "Rising costs, tighter credit conditions, and ongoing geopolitical volatility continue to exert pressure on households and businesses already facing financial strain."

Quackenboss also emphasized that bankruptcy remains a vital tool for recovery. She noted: "For debt-burdened families and companies, bankruptcy remains a critical pathway to restore stability and rebuild toward a stronger financial future."

The combination of these economic pressures has created an environment where financial failure is no longer isolated to struggling industries but has become a widespread phenomenon affecting the broader economy.