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US Bankruptcies Surge: A 15-Year High for Big Firms
27 Dec
Summary
- Large corporate bankruptcies hit highest level in 15 years this year.
- Bankruptcies are widespread across diverse sectors, not industry-specific.
- Individual and small business filings also increased significantly.
Bankruptcies across the United States have seen a dramatic increase, with large corporate filings reaching their highest point in 15 years. This surge highlights the significant financial pressures on both consumers and businesses, exacerbated by climbing costs and restricted credit conditions. Unlike typical downturns where failures cluster within specific industries, the current wave is remarkably broad, affecting a diverse range of sectors.
Experts note this widespread pattern is unusual, with major companies like Sonder, Spirit Airlines, and Del Monte Foods listing over $1 billion in liabilities. Data indicates that as of November 2025, industrials, consumer discretionary, and healthcare sectors have been particularly distressed. This trend extends beyond large corporations, with a substantial rise in filings from small businesses seeking streamlined reorganization under Subchapter V of Chapter 11.
Individual bankruptcies have also climbed, with both Chapter 7 (liquidation) and Chapter 13 (repayment plan) filings showing year-over-year increases. As of November 2025, individual filings were up 8% compared to the previous year. For those facing overwhelming debt, bankruptcy offers a critical pathway to financial stability and future rebuilding.
