According to AIS bankruptcy filing data, U.S. bankruptcies totaled 52,336 in September, up 241 from August and 3,127 from September 2025, a 6.35% year-over-year increase.
The monthly increase was modest at 0.46%, but its direction was notable. September has declined from August in 16 of the past 20 years, averaging a 5.81% decrease over that span. This year, filings moved higher instead. September also posted the highest total for the month since 2019 and kept year-to-date filings nearly 11% above last year.
September closed out a third quarter that finished within 1% of Q2. Rather than retreating after the higher filing levels reached this spring, bankruptcy activity held near that pace through the summer.
The consumer chapter mix changed little in September, extending the stabilization that emerged late in the summer.
Among consumer filings, the Chapter 7/Chapter 13 mix was relatively unchanged from August. Chapter 7 accounted for 63.2% of September filings, compared with 63.0% in August, while Chapter 13 represented 36.6%, compared with 36.7%.
For creditors and servicers, the mix matters because Chapter 7 and Chapter 13 create different servicing requirements and timelines. After larger shifts earlier in the year, two consecutive months near the same mix suggest that movement between the two chapters has leveled off for now.
Subchapter V remains the outlier in year-over-year growth. September filings were up 39.6% from last year, although the increase moderated from August's sharper rise.
Through September, U.S. bankruptcies total 469,811, up 10.93% from the same period in 2025.
Q3 totaled 159,177 filings, up 8.42% from Q3 2025 and just 0.84% below Q2. The two quarters finishing within 1% of each other shows that the higher filing levels reached this spring carried through the summer rather than retreating.
The full-year base case now sits near 626,000 filings, approximately 10.6% above 2025 and still below pre-Covid annual levels.
October is particularly worth watching. Filings have increased from September in 17 of the past 20 years, averaging a 7.32% increase. With Q2 and Q3 already holding at similar levels, October will provide an early indication of whether that pace carries into the final quarter.
The top ten states by September filing volume:
September's geographic picture was less uniform than the national increase. Five of the top ten states grew faster than the 6.35% national year-over-year rate, while three posted slight declines.
Tennessee and Illinois recorded the strongest year-over-year growth among the top ten at approximately 14.6%, followed by Florida at 11.8% and Georgia at 10.6%. California also remained above the national pace at approximately 8.8%.
New York, Alabama and Michigan finished slightly below their September 2025 filing levels. Texas, despite remaining the third-largest state by filing volume, grew at approximately 4.1%, below the national rate.
September shows that national filing growth is not being shared evenly across the largest states, making geography an increasingly important part of the filing picture.
The Federal Reserve raised the target range for the federal funds rate by 25 basis points in September to 3.75% to 4.00%, its first increase since 2023. The move came as inflation remained above the Fed's 2% objective.
August CPI rose 0.4% for the month and 3.4% year over year. Core CPI, excluding food and energy, increased 0.3% for the month and 2.4% from a year earlier.
Household debt also remains elevated. The latest New York Fed data put total household debt at approximately $18.8 trillion at the end of Q2, including $1.26 trillion in credit card balances and $1.71 trillion in auto loan balances. Aggregate delinquency improved slightly, although transitions into early delinquency increased modestly for auto loans and mortgages.
Foreclosure activity continued to rise from year-ago levels in August. ATTOM reported 40,277 properties with foreclosure filings, up 1% from July and 13% from August 2025. Completed foreclosures increased 42% year over year, although overall foreclosure activity remains below pre-pandemic norms.
The economic picture remains mixed. Some measures of household credit performance have improved, while elevated debt balances, higher borrowing costs and rising foreclosure activity remain part of the backdrop heading into Q4.
September reinforces the broader 2026 trend: bankruptcy filings remain above last year's levels, but the pace of growth is not uniform. The consumer Chapter 7/Chapter 13 mix has stabilized in recent months, while filing trends across the largest states are becoming more varied.
With Q2 and Q3 finishing at similar levels, the filing environment enters the final quarter without the pullback that might have followed the higher volumes seen this spring. October is the next important data point, and 2026 enters Q4 with 469,811 filings already recorded. The next month's results will help determine where the year finishes relative to the current ~626,000 base case.
Data sourced from the AIS proprietary bankruptcy database, compiled daily from U.S. court records (PACER) since 2000.