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States of Bankruptcy – 2026 Study

Byline profile imageWritten by Toby Nelson
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Byline profile imageReviewed by Tanza Loudenback, CFP®
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Bankruptcy can offer a financial reset, but how often Americans need it varies by state. Sudden unemployment, divorce, medical crises and other financial shocks can force households into bankruptcy, which research has linked to depression and adverse health outcomes. Individually, a bankruptcy filing signals acute financial distress; collectively, bankruptcy patterns can highlight where residents face the greatest strain in meeting financial obligations.

SmartAsset examined the most recent personal bankruptcy filings in the nation’s bankruptcy courts to identify the states where filings have increased the most. The analysis also measured personal bankruptcy filings per capita in each state. 

Key Findings

  • Four states form the nation’s “bankruptcy belt.” Four geographically contiguous states form the nation’s “bankruptcy belt”: Alabama ranks No. 1 for per capita personal bankruptcy filings, followed by Mississippi at No. 2, Tennessee at No. 3 and Georgia at No. 5.
  • Low-bankruptcy states saw the biggest increases in filings. North Dakota and Alaska had the largest year-over-year increases in personal bankruptcy filings, at 41% and 29%, respectively. However, both states remain among those where residents are least likely to file for bankruptcy.
  • One state saw a decline in bankruptcy filings. Among the 50 states, only Maine saw a decrease in the number of personal bankruptcy filings between 2025 and 2026. Filings in the Pine Tree State declined by about eight percent, from 580 in 2025 to 533 in 2026.
  • In the West, Nevada stands out. Every state west of the Mississippi River has fewer than 250 bankruptcy filings per 100,000 residents except Nevada. Nevadans file for bankruptcy at a rate of 285 cases per 100,000 residents, making them the nation’s fourth most frequent bankruptcy filers.

States Ranked

1. North Dakota
• Bankruptcy filings, 12 months ending March 31, 2026: 716
• Bankruptcy filings, 12 months ending March 31, 2025: 509
• Year-over-year change: 40.7%
• Bankruptcy filings per 100,000 residents: 89.9

 

2. Alaska
• Bankruptcy filings, 12 months ending March 31, 2026: 237
• Bankruptcy filings, 12 months ending March 31, 2025: 184
• Year-over-year change: 28.8%
• Bankruptcy filings per 100,000 residents: 32.0

 

3. Florida
• Bankruptcy filings, 12 months ending March 31, 2026: 44,496
• Bankruptcy filings, 12 months ending March 31, 2025: 36,407
• Year-over-year change: 22.2%
• Bankruptcy filings per 100,000 residents: 190.4

 

4. Texas
• Bankruptcy filings, 12 months ending March 31, 2026: 35,573
• Bankruptcy filings, 12 months ending March 31, 2025: 29,600
• Year-over-year change: 20.2%
• Bankruptcy filings per 100,000 residents: 113.7

 

5. Oregon
• Bankruptcy filings, 12 months ending March 31, 2026: 7,995
• Bankruptcy filings, 12 months ending March 31, 2025: 6,712
• Year-over-year change: 19.1%
• Bankruptcy filings per 100,000 residents: 187.1

 

6. Minnesota
• Bankruptcy filings, 12 months ending March 31, 2026: 10,203
• Bankruptcy filings, 12 months ending March 31, 2025: 8,655
• Year-over-year change: 17.9%
• Bankruptcy filings per 100,000 residents: 176.1

 

7. West Virginia
• Bankruptcy filings, 12 months ending March 31, 2026: 1,792
• Bankruptcy filings, 12 months ending March 31, 2025: 1,521
• Year-over-year change: 17.8%
• Bankruptcy filings per 100,000 residents: 101.2

 

8. Maryland
• Bankruptcy filings, 12 months ending March 31, 2026: 12,717
• Bankruptcy filings, 12 months ending March 31, 2025: 10,847
• Year-over-year change: 17.2%
• Bankruptcy filings per 100,000 residents: 203.0

 

9. Nebraska
• Bankruptcy filings, 12 months ending March 31, 2026: 2,855
• Bankruptcy filings, 12 months ending March 31, 2025: 2,443
• Year-over-year change: 16.9%
• Bankruptcy filings per 100,000 residents: 142.4

 

10. Delaware
• Bankruptcy filings, 12 months ending March 31, 2026: 1,569
• Bankruptcy filings, 12 months ending March 31, 2025: 1,345
• Year-over-year change: 16.7%
• Bankruptcy filings per 100,000 residents: 149.2

 

11. North Carolina
• Bankruptcy filings, 12 months ending March 31, 2026: 9,975
• Bankruptcy filings, 12 months ending March 31, 2025: 8,582
• Year-over-year change: 16.2%
• Bankruptcy filings per 100,000 residents: 90.3

 

12. Montana
• Bankruptcy filings, 12 months ending March 31, 2026: 845
• Bankruptcy filings, 12 months ending March 31, 2025: 727
• Year-over-year change: 16.2%
• Bankruptcy filings per 100,000 residents: 74.3

 

13. South Carolina
• Bankruptcy filings, 12 months ending March 31, 2026: 5,240
• Bankruptcy filings, 12 months ending March 31, 2025: 4,540
• Year-over-year change: 15.4%
• Bankruptcy filings per 100,000 residents: 95.6

 

14. New Mexico
• Bankruptcy filings, 12 months ending March 31, 2026: 1,625
• Bankruptcy filings, 12 months ending March 31, 2025: 1,408
• Year-over-year change: 15.4%
• Bankruptcy filings per 100,000 residents: 76.3

 

15. California
• Bankruptcy filings, 12 months ending March 31, 2026: 52,973
• Bankruptcy filings, 12 months ending March 31, 2025: 46,088
• Year-over-year change: 14.9%
• Bankruptcy filings per 100,000 residents: 134.3

 

16. Vermont
• Bankruptcy filings, 12 months ending March 31, 2026: 268
• Bankruptcy filings, 12 months ending March 31, 2025: 234
• Year-over-year change: 14.5%
• Bankruptcy filings per 100,000 residents: 41.3

 

17. Georgia
• Bankruptcy filings, 12 months ending March 31, 2026: 31,677
• Bankruptcy filings, 12 months ending March 31, 2025: 27,779
• Year-over-year change: 14.0%
• Bankruptcy filings per 100,000 residents: 283.3

 

18. Arizona
• Bankruptcy filings, 12 months ending March 31, 2026: 12,843
• Bankruptcy filings, 12 months ending March 31, 2025: 11,281
• Year-over-year change: 13.9%
• Bankruptcy filings per 100,000 residents: 169.4

 

19. Idaho
• Bankruptcy filings, 12 months ending March 31, 2026: 2,421
• Bankruptcy filings, 12 months ending March 31, 2025: 2,148
• Year-over-year change: 12.7%
• Bankruptcy filings per 100,000 residents: 121.0

 

20. Oklahoma
• Bankruptcy filings, 12 months ending March 31, 2026: 7,386
• Bankruptcy filings, 12 months ending March 31, 2025: 6,554
• Year-over-year change: 12.7%
• Bankruptcy filings per 100,000 residents: 180.4

 

21. Virginia
• Bankruptcy filings, 12 months ending March 31, 2026: 16,054
• Bankruptcy filings, 12 months ending March 31, 2025: 14,253
• Year-over-year change: 12.6%
• Bankruptcy filings per 100,000 residents: 182.2

 

22. Washington
• Bankruptcy filings, 12 months ending March 31, 2026: 9,376
• Bankruptcy filings, 12 months ending March 31, 2025: 8,331
• Year-over-year change: 12.5%
• Bankruptcy filings per 100,000 residents: 117.8

 

23. Missouri
• Bankruptcy filings, 12 months ending March 31, 2026: 10,832
• Bankruptcy filings, 12 months ending March 31, 2025: 9,625
• Year-over-year change: 12.5%
• Bankruptcy filings per 100,000 residents: 173.4

 

24. Nevada
• Bankruptcy filings, 12 months ending March 31, 2026: 9,301
• Bankruptcy filings, 12 months ending March 31, 2025: 8,284
• Year-over-year change: 12.3%
• Bankruptcy filings per 100,000 residents: 284.7

 

25. Colorado
• Bankruptcy filings, 12 months ending March 31, 2026: 8,461
• Bankruptcy filings, 12 months ending March 31, 2025: 7,536
• Year-over-year change: 12.3%
• Bankruptcy filings per 100,000 residents: 142.0

 

26. Utah
• Bankruptcy filings, 12 months ending March 31, 2026: 7,819
• Bankruptcy filings, 12 months ending March 31, 2025: 6,973
• Year-over-year change: 12.1%
• Bankruptcy filings per 100,000 residents: 223.2

 

27. Kansas
• Bankruptcy filings, 12 months ending March 31, 2026: 4,197
• Bankruptcy filings, 12 months ending March 31, 2025: 3,764
• Year-over-year change: 11.5%
• Bankruptcy filings per 100,000 residents: 141.3

 

28. Michigan
• Bankruptcy filings, 12 months ending March 31, 2026: 22,651
• Bankruptcy filings, 12 months ending March 31, 2025: 20,348
• Year-over-year change: 11.3%
• Bankruptcy filings per 100,000 residents: 223.4

 

29. Wyoming
• Bankruptcy filings, 12 months ending March 31, 2026: 561
• Bankruptcy filings, 12 months ending March 31, 2025: 508
• Year-over-year change: 10.4%
• Bankruptcy filings per 100,000 residents: 95.5

 

30. Indiana
• Bankruptcy filings, 12 months ending March 31, 2026: 18,200
• Bankruptcy filings, 12 months ending March 31, 2025: 16,510
• Year-over-year change: 10.2%
• Bankruptcy filings per 100,000 residents: 262.8

 

31. Pennsylvania
• Bankruptcy filings, 12 months ending March 31, 2026: 13,521
• Bankruptcy filings, 12 months ending March 31, 2025: 12,319
• Year-over-year change: 9.8%
• Bankruptcy filings per 100,000 residents: 103.4

 

32. Iowa
• Bankruptcy filings, 12 months ending March 31, 2026: 3,559
• Bankruptcy filings, 12 months ending March 31, 2025: 3,245
• Year-over-year change: 9.7%
• Bankruptcy filings per 100,000 residents: 109.8

 

33. Kentucky
• Bankruptcy filings, 12 months ending March 31, 2026: 12,120
• Bankruptcy filings, 12 months ending March 31, 2025: 11,131
• Year-over-year change: 8.9%
• Bankruptcy filings per 100,000 residents: 264.2

 

34. South Dakota
• Bankruptcy filings, 12 months ending March 31, 2026: 650
• Bankruptcy filings, 12 months ending March 31, 2025: 599
• Year-over-year change: 8.5%
• Bankruptcy filings per 100,000 residents: 70.3

 

35. New York
• Bankruptcy filings, 12 months ending March 31, 2026: 21,316
• Bankruptcy filings, 12 months ending March 31, 2025: 19,684
• Year-over-year change: 8.3%
• Bankruptcy filings per 100,000 residents: 107.3

 

36. Louisiana
• Bankruptcy filings, 12 months ending March 31, 2026: 9,984
• Bankruptcy filings, 12 months ending March 31, 2025: 9,226
• Year-over-year change: 8.2%
• Bankruptcy filings per 100,000 residents: 217.2

 

37. Alabama
• Bankruptcy filings, 12 months ending March 31, 2026: 20,909
• Bankruptcy filings, 12 months ending March 31, 2025: 19,428
• Year-over-year change: 7.6%
• Bankruptcy filings per 100,000 residents: 405.4

 

38. Massachusetts
• Bankruptcy filings, 12 months ending March 31, 2026: 4,862
• Bankruptcy filings, 12 months ending March 31, 2025: 4,526
• Year-over-year change: 7.4%
• Bankruptcy filings per 100,000 residents: 68.1

 

39. Arkansas
• Bankruptcy filings, 12 months ending March 31, 2026: 6,966
• Bankruptcy filings, 12 months ending March 31, 2025: 6,491
• Year-over-year change: 7.3%
• Bankruptcy filings per 100,000 residents: 225.6

 

40. Connecticut
• Bankruptcy filings, 12 months ending March 31, 2026: 3,559
• Bankruptcy filings, 12 months ending March 31, 2025: 3,338
• Year-over-year change: 6.6%
• Bankruptcy filings per 100,000 residents: 96.8

 

41. Tennessee
• Bankruptcy filings, 12 months ending March 31, 2026: 21,630
• Bankruptcy filings, 12 months ending March 31, 2025: 20,296
• Year-over-year change: 6.6%
• Bankruptcy filings per 100,000 residents: 299.3

 

42. Mississippi
• Bankruptcy filings, 12 months ending March 31, 2026: 9,762
• Bankruptcy filings, 12 months ending March 31, 2025: 9,177
• Year-over-year change: 6.4%
• Bankruptcy filings per 100,000 residents: 331.7

 

43. Rhode Island
• Bankruptcy filings, 12 months ending March 31, 2026: 1,056
• Bankruptcy filings, 12 months ending March 31, 2025: 993
• Year-over-year change: 6.3%
• Bankruptcy filings per 100,000 residents: 94.9

 

44. New Jersey
• Bankruptcy filings, 12 months ending March 31, 2026: 13,409
• Bankruptcy filings, 12 months ending March 31, 2025: 12,704
• Year-over-year change: 5.5%
• Bankruptcy filings per 100,000 residents: 141.1

 

45. Ohio
• Bankruptcy filings, 12 months ending March 31, 2026: 26,110
• Bankruptcy filings, 12 months ending March 31, 2025: 24,777
• Year-over-year change: 5.4%
• Bankruptcy filings per 100,000 residents: 219.7

 

46. Illinois
• Bankruptcy filings, 12 months ending March 31, 2026: 26,525
• Bankruptcy filings, 12 months ending March 31, 2025: 25,581
• Year-over-year change: 3.7%
• Bankruptcy filings per 100,000 residents: 208.7

 

47. Wisconsin
• Bankruptcy filings, 12 months ending March 31, 2026: 10,021
• Bankruptcy filings, 12 months ending March 31, 2025: 9,734
• Year-over-year change: 2.9%
• Bankruptcy filings per 100,000 residents: 168.1

 

48. Hawaii
• Bankruptcy filings, 12 months ending March 31, 2026: 1,140
• Bankruptcy filings, 12 months ending March 31, 2025: 1,117
• Year-over-year change: 2.1%
• Bankruptcy filings per 100,000 residents: 78.8

 

49. New Hampshire
• Bankruptcy filings, 12 months ending March 31, 2026: 906
• Bankruptcy filings, 12 months ending March 31, 2025: 898
• Year-over-year change: 0.9%
• Bankruptcy filings per 100,000 residents: 64.3

 

50. Maine
• Bankruptcy filings, 12 months ending March 31, 2026: 533
• Bankruptcy filings, 12 months ending March 31, 2025: 580
• Year-over-year change: -8.1%
• Bankruptcy filings per 100,000 residents: 37.9

Methodology

Nonbusiness Chapter 7, Chapter 11 and Chapter 13 bankruptcy filings across 84 U.S. bankruptcy courts were examined for the 12-month periods ending March 31, 2025, and March 31, 2026, to determine the year-over-year change in filings by state. For states divided into multiple judicial districts, district totals were combined into statewide counts. Filing rates per 100,000 residents were calculated using filings for the 12-month period ending March 31, 2026, and 2024 American Community Survey one-year population estimates. Source data providers are not affiliated with, and do not endorse or sponsor, this study or its findings.

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