Bankruptcies up sharply in the United States in 2024

The number of business and personal bankruptcies in the United States of America increased by 14.2 percent in 2024 according to data presented by the Administrative Office of U.S. Courts.

There were 23,107 business bankruptcies in 2024 compared to 18,926 in 2023. The number of non-business bankruptcies increased from 434,064 in 2023 to 494,201 in 2024. When you add them together, there is a total of 517,308 bankruptcies in 2024, up from 452,990 in 2023.

“For more than a decade, total filings fell steadily, from a high of nearly 1.6 million in September 2010 to a low of 380,634 in June 2022,” reads an information release sent out this morning. “Total filings have increased each quarter since then, but they remain far lower than historical highs.”

Each of these filings listed in the announcement are in one of four categories.

• According to U.S. Courts, Chapter 7 allows for a debtor’s property to be sold to be liquidated to pay back creditors
• Chapter 11 allows for a reorganization of a corporation or partnership to allow a business to stay alive so creditors can be paid back over time
• Chapter 12 is for family farms or a “family fisherman” as defined in the Bankruptcy Code
• Chapter 13 is to allow for the adjustment of debts by an individual with regular income

In the Thomas Jefferson Planning District Commission, there were a total of 302 bankruptcies in 2024 with 173 of them Chapter 7 and 127 of them Chapter 13.

Before you go: This article was originally sent out as part of the Charlottesville Community Engagement newsletter in the February 4, 2025 edition. Both are functions of Town Crier Productions. You can support the work by purchasing a paid subscription or contributing monthly through Patreon. You can also send in a check or send an email, but drop me a line first!