Quick Answer
Approximately 400,000 to 500,000 bankruptcy cases are filed annually in the U.S. (recent years), down from over 1.5 million in 2010. The Chapter 13 dismissal rate ranges from approximately 30% to over 60% depending on the district. Chapter 7 has a very high discharge rate. Rates vary dramatically by geography.
National Filing Rate Trends
Bankruptcy filing rates in the United States have followed a dramatic trajectory over the past two decades:
- 2005 spike: Over 2 million cases were filed in 2005 as debtors rushed to file before BAPCPA took effect on October 17, 2005.
- 2006 crash: Filings dropped to approximately 600,000 in 2006 as the BAPCPA means test and new requirements took effect.
- 2008-2010 surge: The financial crisis drove filings back above 1.5 million by 2010.
- 2011-2019 decline: Filings declined steadily as the economy recovered, falling to approximately 750,000 by 2019.
- 2020-2021 historic lows: Pandemic relief measures -- stimulus payments, enhanced unemployment benefits, eviction moratoriums, and student loan forbearance -- pushed filings to historic lows, below 500,000.
- 2022-present: Filings have been rising as pandemic-era protections have expired. Recent annual totals are in the 400,000-500,000 range.
Data source: Annual filing statistics are published by the Administrative Office of the U.S. Courts in the Federal Judicial Caseload Statistics reports. Case-level data is available from the Federal Judicial Center Integrated Database. The Open Bankruptcy Project analyzes 4.9 million cases from this database. See 1328f.org/statistics.
Chapter 7 vs. Chapter 13 Filing Rates
The split between Chapter 7 and Chapter 13 varies significantly by region:
- Nationally: Approximately 60-70% of consumer cases are Chapter 7 and 30-40% are Chapter 13.
- Southern districts: Many Southern districts have much higher Chapter 13 rates -- in some, Chapter 13 is the majority of consumer filings. Academic research attributes this to local legal culture, higher homeownership rates, and attorney fee structures.
- Northern and Western districts: Chapter 7 tends to dominate, often accounting for 70-80% or more of consumer filings.
Why does the chapter split matter? Chapter 13 takes 3-5 years and has a high dismissal rate. Chapter 7 takes 3-6 months and has a very high discharge rate. The chapter a debtor files under significantly affects their outcome. In some districts, attorneys may steer clients toward Chapter 13 when Chapter 7 might be more appropriate -- a pattern associated with "bankruptcy mill" practices.
Dismissal Rates
The dismissal rate -- the percentage of cases that end without a discharge -- is one of the most important statistics in consumer bankruptcy:
Chapter 7 Dismissal and Denial Rates
Chapter 7 has a very low dismissal/denial rate. The vast majority of Chapter 7 filers receive a full discharge. Cases are denied discharge only under the limited grounds of 11 U.S.C. § 727(a), such as fraud, concealment of property, destruction of records, or failure to complete debtor education.
Chapter 13 Dismissal Rates
Chapter 13 dismissal rates are dramatically higher and vary enormously by district. Based on FJC data, dismissal rates range from approximately 30% in some districts to over 60% in others. Common reasons for Chapter 13 dismissal include:
- Inability to make plan payments: Job loss, income reduction, or unexpected expenses during the 3-5 year plan period.
- Failure to file required documents: Missing tax returns, schedules, or other required filings.
- Plan infeasibility: The plan was too aggressive from the start and left insufficient margin for unexpected changes.
- Attorney quality: Research consistently shows that attorney choice is one of the strongest predictors of Chapter 13 outcomes. High-volume practices with high caseloads tend to have higher dismissal rates.
- Local legal culture: Trustee practices, judge expectations, and plan confirmation standards vary significantly by district.
Filing Rates by State
Per-capita bankruptcy filing rates vary significantly across states. Factors that influence state-level filing rates include:
- Economic conditions: States with higher unemployment, lower median incomes, and higher consumer debt levels tend to have higher filing rates.
- Exemption laws: States with more debtor-friendly exemptions may see different filing patterns. Unlimited homestead exemption states sometimes have lower filing rates because debtors have less incentive to file.
- Legal culture: Attorney advertising, fee structures, and local practice norms affect how many people file and under which chapter.
- Collection practices: States with more aggressive creditor collection laws (wage garnishment without limits, bank levies) may drive more debtors to seek bankruptcy protection.
See our state-by-state analysis for detailed breakdowns.
What Dismissal Means for Debtors
When a bankruptcy case is dismissed, several things happen:
- The automatic stay lifts immediately and creditors may resume all collection activities.
- In Chapter 13, plan payments made to the trustee are distributed to creditors (minus trustee fees) or returned to the debtor depending on the plan terms and local rules.
- The debtor may refile, but faces automatic stay limitations under 11 U.S.C. § 362(c)(3)-(4) if the dismissal was within the prior year.
- The debtor may be subject to a 180-day filing bar under Section 109(g) in certain circumstances.
If your case was dismissed: You have options. You may be able to refile immediately (subject to stay limits), negotiate directly with creditors, or explore non-bankruptcy alternatives. See our recovery options guide for next steps.
Frequently Asked Questions
What is the national bankruptcy filing rate?
Approximately 400,000-500,000 cases per year in recent years, representing a per-capita rate of roughly 1.2-1.5 filings per 1,000 adults. This is down from the 2010 peak of over 1.5 million.
What is the Chapter 13 dismissal rate?
It ranges from approximately 30% to over 60% depending on the district. Common causes: job loss, inability to make payments, plan infeasibility, and attorney quality. See 1328f.org/statistics for detailed data.
Which states have the highest bankruptcy rates?
Southern and Midwestern states historically have higher rates: Tennessee, Alabama, Georgia, and Nevada consistently rank among the highest. Northeast and Mountain West states tend to have lower rates.
How have bankruptcy rates changed over time?
Peak: 1.5M+ in 2010. BAPCPA (2005) caused an initial drop. Filings hit historic lows during 2020-2021 pandemic relief. Currently rising as temporary protections expire.