Bankruptcy Rate Changes In 2025

Each year, the bankruptcy rate changes and can tell us something about what is going on with our state and national economy. When January comes around, we can look at data from the previous year to determine the bankruptcy rate and other factors affecting the economy. There were many changes made across the United States in 2025 that led to a change in the bankruptcy rate nationwide and here in Nevada. Read on to learn more about how the bankruptcy rate changed in 2025, and to what degree. If you need debt relief in the Henderson area, our bankruptcy team is standing by to assist. Schedule your free consultation with Henderson Bankruptcy Lawyers today call 702-899-3328.

The Three Main Chapters Of Bankruptcy

There are several different chapters of bankruptcy, including relatively rare ones for specific situations like farmers and foreign corporations. When analyzing bankruptcy statistics, experts look at three main types of bankruptcy filings: chapter 7, chapter 11, and chapter 13. Chapter 7 makes up the majority of bankruptcy filings in Henderson and across the United States. It allows households that meet certain income guidelines to liquidate unsecured debt like medical bills and credit cards. It can also be used by corporations, but typically forces the company to go out of business. Chapter 11 bankruptcy is the reverse- it is mostly used by businesses looking to stay open, but is used in rare instances by individuals in complicated debt situations. Chapter 13 bankruptcy is a payment plan lasting 3 or 5 years that pays off secured and priority debts in full, and unsecured debts to the extent possible.

Changes To Nevada’s Bankruptcy Rate In 2025

Nevada’s bankruptcy rate increased fairly significantly in 2025. Tourism decreased significantly, partially for political reasons due to tariff policies, and partially due to vacationers having less disposable income due to inflation. Sports betting apps are also rising in popularity, reducing the incentive to travel to a location known for casinos and other forms of legal gambling. Chapter 7 filings increased from 6,699 in 2024 to 7,654 in 2025, or 14 percent. Chapter 11 filings only make a small portion of Nevada’s bankruptcy cases, but saw a substantial increase from 70 filings in 2024 to 103 filings in 2025, or 47 percent. Chapter 13 filings increased from 1,385 to 1,450, or about 5 percent.

Henderson is part of the Las Vegas bankruptcy district, which makes up the majority of Nevada’s bankruptcy filings. In the Las Vegas district, chapter 7 filings increased every single month of 2025 as compared to the same month in 2024. For the year in total, chapter 7 filings increased from 5,761 to 6,742, or 17 percent. Chapter 11 filings increased from 44 to 80, or 81 percent. Chapter 13 filings increased from 1,052 to 1,138, or 8 percent.

Changes To The National Bankruptcy Rate In 2025

Increasing bankruptcy rates weren’t just experienced by Henderson and Nevada. The United States as a whole saw bankruptcy filings of all types increase in 2025. The country as a whole saw bankruptcy filings rise 11 percent in 2025. This was a total of 565,759 cases among all chapters of bankruptcy. Despite significant increases from 2024, these rates are lower than those seen during the pandemic and 2019. Consumer chapter 7 filings make up the majority of cases nationwide and rose 15 percent. Chapter 13 filings increased by 6 percent. Commercial bankruptcy filings were up 5 percent, with small business filings increasing much higher than standard chapter 11 bankruptcy cases. Experts blame the increase in bankruptcy filings on causes like high interest rates, geopolitical uncertainty, and a weak labor market. They also expect the rates to stay high and possibly increase further, as these economic pressures only seem likely to continue. Health insurance premiums are set to rise, student loan payments are set to return, and inflation continues to drive the cost of living upwards.

Major Business Bankruptcy Cases Of 2025

Some companies that you have probably heard of, and may frequently buy from, filed for bankruptcy in 2025. A downturn in the economy means less disposable income in shoppers’ bank accounts, so fashion and accessory retailers were one of the most-impacted industries. Claire’s, Forever 21, and Joann all filed their second bankruptcy cases, with the two former companies officially going out of business. Spirit Airlines declared bankruptcy, signaling less people have funds for traveling- especially with an airline that is already known for being low-budget. United Site Services, one of the country’s leading porta-potty suppliers, filed for chapter 11 bankruptcy in 2025. This indicates that there are fewer large events being held, and fewer new construction projects underway. Hooters filed for bankruptcy and is on a mission to turn around the company’s image into a more family-friendly one. While this filing could be a sign that diners have less money in their pockets for meals at restaurants, online sources for erotic content like OnlyFans could explain the chain’s declining popularity- just like how sports betting apps are cutting into a base of gamblers that might otherwise go to casinos.

Rite Aid, a widespread pharmacy chain, was another major company to file its second bankruptcy case in 2025. Like others, the second filing was the death toll, and its locations have since been purchased by competitors like Walgreens and CVS. Genetic testing company 23andMe and iRobot, the maker of Roomba vacuums, both filed for bankruptcy in 2025. While both had promising starts as leaders in their industries, the market for technology has been flooded since their more successful years, and thus is highly competitive. Electronic Playhouse, located in Caesar’s Palace, was one of the most notable business bankruptcy filings for locals in 2025.

When large companies like the ones described above file for bankruptcy, they tend to use chapter 11, and don’t qualify for small business provisions. If you own your own small business, your bankruptcy filing would likely look far different from those you read about in newspapers. There are also strategies that allow eligible business owners to clear debts with chapter 7 bankruptcy. If you’d like to discuss them with an experienced Henderson bankruptcy lawyer, schedule your free consultation today at 702-899-3328.

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Rising bankruptcy filings may make you consider joining the growing ranks of those clearing debts and improving their financial situations through bankruptcy yourself. Whether you’re facing a wage garnishment, lawsuit, repossession, or simply have too much debt, bankruptcy may be able to help. Chapter 7 can liquidate unsecured debts to provide a burden-free path forward, and chapter 13 can reorganize debts into a payment plan that can address other types of debts, too. It provides numerous other benefits that can be crucial to someone facing overwhelming debt. Don’t wait until your creditors have you cornered to start learning more and taking the first steps of the bankruptcy process. You may get the most out of bankruptcy by planning early and filing when is the most strategic based on your unique situation. Don’t wait to schedule your free phone consultation with Henderson Bankruptcy Lawyers. Call 702-899-3328 to schedule your free consultation today.