December recorded 45,932 total bankruptcy filings, a 20.11 percent increase over the same month in 2024 and the strongest year-over-year monthly gain since July 2024. This marks the 40th consecutive month of year-over-year growth and closes out 2025 with a year-to-date total of 566,177 filings, up 11.10 percent from 2024. 

On an annual basis, 2025 recorded the highest level of bankruptcy filings since the pandemic-era reset, reflecting sustained upward pressure throughout the year, even as overall filing volumes remain 25.48 percent below pre-COVID norms. 

Notably, filings rose 5.14 percent from November, a departure from the typical end of year pattern where December volumes decline following October’s peak and November’s seasonal pullback. While November to December increases have occurred historically, they have largely coincided with statutory anomalies or periods of acute financial stress, making December’s rise notable as a seasonality break driven by underlying filing momentum rather than a one-time anomaly. 

Chapter-level activity continued to reflect this trend. Chapter 7 and 13 filings maintained upward momentum, increasing 8.85 percent and 18.13 percent year-over-year respectively, though both remain below pre-COVID December averages (Chapter 7 down 26.98 percent and Chapter 13 down 16.12 percent). Chapter 11 filings increased 15.65 percent from last December and stand 38.54 percent above pre-pandemic norms, with Subchapter V cases contributing at 235 filings, signaling persistent challenges for small and mid-market enterprises amid elevated interest rates and operational costs as creditors monitor potential ripple effects into 2026.