Personal bankruptcy filings in the United States have surged over the past few years, with more than half a million cases filed last year, an increase of nearly 50% compared with three years earlier. Filings continued to climb into early 2026, rising almost 12% year-on-year by the end of March, though overall levels still remain below those seen before the coronavirus pandemic. The trend matters because it points to growing financial strain on American households, many of whom are already stretched, and reflects the fading effects of the emergency financial support that once kept people afloat.

Experts attribute the rebound largely to the withdrawal of pandemic-era government support, such as stimulus payments and expanded unemployment benefits, which had artificially suppressed bankruptcy filings and left the 2022 rate around 51% lower than in 2019. As that safety net disappeared, more people found themselves unable to keep up with debts and turned to bankruptcy instead. Academics quoted in the article, including Sasha Indarte of the University of Pennsylvania and Samuel Antill of Harvard, say the rise shows consumers struggling to cope with their obligations, though they note bankruptcy can bring relief, with credit scores often recovering within a year, and caution against treating the bankruptcy rate as a broad measure of overall economic health.