October 2026 Bankruptcy Filings Report

November 10, 2026

U.S. bankruptcy filings totaled 54,037 in October 2026, up 3.23% from September and 1.84% from October 2025, according to AIS bankruptcy filing data. Although October recorded its highest filing volume for the month since 2019, year-over-year growth slowed to its lowest rate since January 2025.

The result stands out against October’s recent performance. October was the highest-volume filing month in both 2024 and 2025, with year-over-year increases of 16.0% and 12.4%, respectively. This year, October ranked fourth through the first ten months, behind March, April and July.

October also fell short of its typical seasonal increase. Over the previous 20 years, filings increased an average of 7.32% from September to October, compared with this year’s 3.23% gain.

October 2026 had one fewer business day than October 2025, a factor worth considering when comparing monthly totals. However, historical data shows that filing volumes frequently increase despite fewer business days, making it difficult to isolate the calendar’s impact on October’s results.

The broader trend remains positive, with bankruptcy filings nearly 10% above 2025 levels through October. But the pace of growth has moderated considerably since the first half of the year.

October 2026 Bankruptcy Filing Highlights

Total bankruptcy filings: 54,037
Month-over-month change: +3.23% (+1,692 filings)
Year-over-year change: +1.84% (+975 filings)
Year-to-date filings: 523,859
Year-to-date growth: +9.92%
October ranking in 2026: Fourth through October
Below pre-pandemic October average (2017–2019): 18.96%
Below pre-pandemic YTD average: 19.26%
Full-year 2026 projection: Approximately 621,000

Chapter 13 Filings Lead October Growth

Chapter 13 filings reached their highest monthly total of 2026 in October, increasing 7.39% from September and 5.00% from October 2025. Chapter 7 filings, meanwhile, were essentially flat year over year.

October filings by chapter:

Chapter 7: 33,238 filings, up 0.11% year over year
Chapter 13: 20,078 filings, up 5.00% year over year
Chapter 11: 693 filings, down 0.86% year over year
Subchapter V: 268 filings, up 19.11% year over year

The difference between Chapter 7 and Chapter 13 growth is one of October’s more significant developments.

Chapter 7 accounted for approximately 61.9% of consumer filings, down from roughly 63% during July through September. Chapter 13’s share increased to 37.9%, its highest level since January.

For creditors and bankruptcy servicers, the shift is relevant. Chapter 13 cases typically involve repayment plans lasting three to five years, requiring ongoing account monitoring, trustee payment reconciliation and servicing activity throughout the life of the case.

Subchapter V filings also continued to increase, although growth moderated for the second consecutive month. October’s 19.11% year-over-year increase followed gains of 58.60% in August and 39.58% in September.

Despite the slower growth, Subchapter V remains an important segment to monitor, particularly given the substantial year-over-year increases recorded throughout 2026.

Bankruptcy Filings Approach 524,000 Through October

Through the first ten months of 2026, U.S. bankruptcy filings reached 523,859, an increase of 9.92% over the same period in 2025.

While growth remains substantial, the year-to-date increase has declined from more than 13% in March and April.

The moderation is also evident in recent monthly comparisons. Bankruptcy filings increased 16.0% year over year in March, 13.0% in June and 10.3% in July. Growth slowed to 8.6% in August, 6.4% in September and 1.84% in October.

Bankruptcy filings also remain below pre-pandemic levels. Through October, total filings were 19.26% below the comparable 2017–2019 average, nearly unchanged from the 19.29% gap reported through September.

Full-Year 2026 Outlook

With two months remaining, AIS projects approximately 621,000 bankruptcy filings for 2026, representing roughly 9.7% growth over 2025.

The revised projection reflects historical November and December filing patterns, adjusted to account for the moderation in year-over-year growth observed during the second half of 2026.

Although October’s growth was weaker than expected, the projected annual total remains on track to be the highest since 2019.

The remaining question is whether November and December follow their typical seasonal patterns or continue the slower growth observed in recent months.

Geographic Trends Reveal Uneven Filing Growth

October’s national increase of 1.84% masks significant differences among the states generating the largest filing volumes.

California led the nation with 4,899 filings, followed by Florida (4,493), Texas (4,154), Georgia (3,282) and Illinois (2,565).

Ohio, Tennessee, New York, Michigan and Alabama rounded out the ten highest-volume states.

Among these states, Texas recorded the strongest year-over-year growth at 13.1%, followed by Illinois (+9.1%), Georgia (+8.9%) and Florida (+8.8%).

Together, those four states generated approximately 1,330 more filings than in October 2025, exceeding the national net increase of 975. Texas alone accounted for approximately half of that increase.

Other large states experienced declining volumes. Ohio filings fell 3.2%, New York declined 5.0%, Alabama dropped 5.9% and Michigan decreased 7.9%.

California, the nation’s largest state by filing volume, increased just 0.8% year over year, compared with an 8.8% increase in September.

The differences highlight why national filing trends do not necessarily reflect conditions affecting individual creditor portfolios. Lenders with substantial exposure in Texas, Florida or other faster-growing states may experience considerably different bankruptcy volumes from those concentrated in states where filings have leveled off or declined.

Economic and Regulatory Developments to Watch

Household Debt and Consumer Financial Pressure

U.S. household debt reached $19.1 trillion in the third quarter of 2026, increasing $334 billion (1.8%) from the previous quarter, according to the Federal Reserve Bank of New York. Credit card balances rose to $1.29 trillion, while auto loan balances reached $1.73 trillion.

The share of outstanding household debt in some stage of delinquency increased to 5.0%, up from 4.7% in the second quarter. Early-stage delinquency rates rose for mortgages and auto loans but improved slightly for credit cards. Transitions into serious delinquency also improved for credit cards and student loans.

Separate New York Fed research found that credit card delinquency rates remain elevated compared with pre-pandemic levels, particularly in lower-income neighborhoods, despite recent improvements in some delinquency measures.

The results suggest that financial pressure persists across parts of the consumer credit market, even as bankruptcy filing growth moderates. For creditors, these trends provide additional context for evaluating portfolio performance without establishing a direct connection to bankruptcy filing volumes.

New Leadership at the U.S. Trustee Program

Stephen Falanga assumed leadership of the U.S. Trustee Program on November 2, bringing more than 30 years of insolvency experience, primarily involving Chapter 11 business bankruptcies.

His appointment comes as the Department of Justice considers its priorities for bankruptcy oversight and enforcement under the Trump administration. Falanga’s experience in business restructuring provides some insight into his background, but his approach to consumer bankruptcy matters remains to be seen.

For creditors and bankruptcy servicers, the program’s direction on enforcement, compliance and bankruptcy administration will be important to follow.

Post-Election Bankruptcy Outlook

The November midterm elections shifted control of both chambers of Congress to Democrats, setting the stage for a different legislative agenda in 2027. However, with President Trump retaining veto authority, significant changes to bankruptcy law could face substantial obstacles.

During AIS’s November 5 webinar, Post-Election Bankruptcy Outlook: What Creditors Need to Know, speakers discussed the potential revival of legislation addressing Chapter 13 and Subchapter V debt limits, along with renewed congressional attention to consumer bankruptcy protections and financial services regulation.

Watch the webinar recording: Post-Election Bankruptcy Outlook Webinar: 2026

What October’s Bankruptcy Trends Mean for Creditors

October’s slower year-over-year growth warrants attention, particularly following the stronger filing increases recorded over the past two years.

While the calendar provides some context, the data points to a broader moderation in growth since midyear. At the same time, Chapter 13 filings reached a new 2026 high, and several large states continued to experience meaningful increases.

For creditors preparing their 2027 operating plans, these differences matter. Chapter mix influences the type and duration of servicing activity, while geographic exposure can significantly affect filing volumes across individual portfolios.

November will provide another indication of whether the slower national growth continues. With filings still nearly 10% above last year’s pace, the question is not simply how much bankruptcy activity is increasing, but where growth is occurring and whether the moderation seen in recent months will continue into 2027.

Data sourced from the AIS proprietary bankruptcy database, compiled daily from U.S. court records (PACER) since 2000.