Data and perspectives from Epiq AACER, the American Bankruptcy Institute (ABI) and LegalShield highlighted climbing filings and rising stress from consumers.

According to data provided by Epiq AACER, total bankruptcy filings came in at 43,661 in November, an 8% increase from last November’s total of 40,305.

Experts found individual bankruptcy filings also increased 8% to 40,973 in November from 37,814 filings in the same month last year.

The data showed there were 25,329 individual Chapter 7 filings in November, an 11% increase over the 22,871 filings recorded a year ago.

There were 15,558 individual Chapter 13 filings last month, a 5% rise over the 14,865 filings in November 2024, according to Epiq AACER.

“Rising costs, tighter credit conditions, and ongoing geopolitical volatility continue to exert pressure on households and businesses already facing financial strain,” ABI executive director Amy Quackenboss said in a news release. “For debt-burdened families and companies, bankruptcy remains a critical pathway to restore stability and rebuild toward a stronger financial future.”

And LegalShield described how many weary consumers are seeking that path.

LegalShield’s Consumer Legal Stress Index (CLSI) climbed to 72.5 in November, its ninth consecutive monthly increase. The reading is up 9.4% year-over-year, driven by a sharp spike in calls about billing disputes, debt collection and loan modifications.

The consumer finance subindex jumped 4.6% in just two months to 113.3, with LegalShield saying that’s signaling financial strain has shifted from a looming threat to an immediate crisis for millions of households.

And the bankruptcy subindex rose 5.2% year-over-year, continuing its climb since the Federal Reserve’s initial rate hike in March 2022. LegalShield said its bankruptcy data historically leads actual filings by two quarters.

“The story all year has been warning signs, foreclosures in spring, bankruptcies in summer,” LegalShield senior vice president of consumer analytics Matt Layton said in another news release. “Now we’re seeing people pick up the phone about consumer debts. That’s a different kind of call.”

“Foreclosures surged first, then bankruptcies spiked, and now consumer finance is shooting up as people load on holiday debt,” Layton added. “Cyber Week is in the books, but holiday shopping isn’t. We’ll be watching whether this consumer finance surge is a leading indicator of a spending pullback, or evidence that people are pushing through despite the stress. Either way, our data suggests 2026 will start with a heavy financial hangover.”

Turning back to the November bankruptcy data from Epiq AACER, experts pointed out most categories of bankruptcy filings typically drop from October to November due to fewer business days and the Thanksgiving holiday.

As a result, Epiq AACER reported total and consumer bankruptcies both decreased 18% when compared to their respective October filing totals of 53,027 and 50,183, respectively. Individual Chapter 7 and Chapter 13 filings also decreased 18% each from October’s filings.

“November commercial Chapter 11 filings rose 20% year-over-year, with Subchapter V elections up 23%, signaling ongoing financial stress and a return toward pre-COVID levels as CARES Act benefits fade,” Epiq AACER vice president Michael Hunter said. “Overall bankruptcy filings increased 8%, while credit card charge-offs remain at historically high levels, though signs of stabilization are emerging.

“FHA partial claim recidivism is also expected to exert additional pressure on individual filings through 2026. These trends suggest bankruptcy volumes will continue rising next year as households and businesses contend with growing balances, tighter credit conditions amid higher interest rates, and pockets of mortgage distress,” Hunter went on to say.