Law Offices of Buddy D. Ford, P.A.

For Business Bankruptcy law certificate holders, “Board Certified – Business Bankruptcy Law – American Board of Certification” and for Creditors’ Rights law certificate holders, “Board Certified – Creditors’ Rights Law – American Board of Certification.”

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Are more people filing for bankruptcy?

People have been filing for bankruptcy for many decades. Bankruptcy is the process of relieving overwhelming debt. Filers can have their debt obligations (medical bills, credit card debt, etc.) discharged in just a few months or years – depending on the type of bankruptcy they file. Bankruptcy can also protect people from mortgage foreclosure, property repossession and collections. Essentially, filers can start over and clear away their debt without fearing serious repercussions. 

In 2024, bankruptcy saw a rise of 16.2% over twelve months. There are many reasons why more people are filing for bankruptcy. Here is what you should know:

What is leading to the rise of bankruptcy filings?

Credit card debt is one of the largest types of financial obligations in the United States. Many families struggle to resolve credit card debt because they lose a source of income or struggle to pay on time, leading to late fees and increased interest rates.

Many forms of debt are outside of people’s control, however. Over 15 million Americans collectively have more than $49 billion in medical bills in 2025. Many individuals suffer thousands of dollars in medical debt after just a single visit to a hospital or ambulance trip. These individuals, however, have been given some help with new regulations. Credit reporting agencies (Experian, Equifax and TransUnion) are no longer including medical debts in collection that are less than a year old in credit reports.  Nor will they include resolved medical debts or those under $500. These measures can improve many people’s employment, housing and loan options. 

Even though new regulations have helped expand financial options for people, many families still struggle financially to pay off their existing financial obligations. The economy may be largely at play in the rise of bankruptcy as job loss increases and consumer goods and taxes inflate in price. As a result, many people are struggling to pay off old debts as they gain new debt. This has resulted in more people filing for bankruptcy. 

How can you benefit from bankruptcy? 

Americans who are struggling to pay off their debts may need to explore their debt relief options. There are several bankruptcy options families can explore with the help of legal guidance.