Chapter 7 Bankruptcy Filings Increase in First Half of 2025

Since the beginning of 2025, the news has been filled with stories related to America’s economy and the changes instituted by the new presidential administration. Though there is disagreement about the best way to proceed and we probably won’t know the true effects of new policies for quite a while, many people in the United States are still looking for a way to address their debt issues.

Over the first six months of 2025, there has been a 15 percent increase in Chapter 7 bankruptcy filings versus the same period last year. More than 163,000 individuals have sought relief under Chapter 7 this year. When Chapter 13 cases are included, the number of people petitioning for bankruptcy protection has risen by about 25,000.

Experts have pointed to a number of potential explanations for this surge, including:

• Persistently high interest rates — While many people assumed that interest rates would drop once inflation returned to normal levels, this has not occurred. Higher borrowing costs make daily life more expensive, and some homeowners who anticipated refinancing their mortgages have been not yet been able to gain a substantial benefit by doing so. 
• High credit-card debt — By some metrics, residents of the United States are carrying more credit-card debt than ever before. A recent analysis showed that more than 10 percent of cardholders are now only making minimum payments, which means that interest, and possible late fees, could put them in a deeper hole.
• Resumption of student-loan obligations — Following prolonged pandemic-related relief and debates in Washington over potential debt reduction measures, the recommencement of student loan payments has added another layer of financial strain for millions, pushing some into insolvency.

If you’re falling behind financially due to one of these factors or some other reason, it’s time to take positive action. You’re not alone, and Chapter 7 bankruptcy can offer a necessary lifeline. In the short term, the automatic stay that is issued once you file will stop harassment from creditors and sanctions associated with unpaid bills, such as the cutoff of utility service. Once the process is completed, your non-exempt debts will be eliminated, giving you the chance to rebuild your credit and achieve long-term financial stability. 

Jeff Field & Associates represents Georgia residents in Chapter 7 bankruptcies, as well as Chapter 13 proceedings. Please call 404-381-1278 or contact us online to schedule a consultation regarding your particular needs. Our offices are in Douglasville, Gainesville, Bogart, Lawrenceville, Marietta and Decatur.