Burlingame, CA (May 8, 2025) |
Data collected by G2 Risk Solutions (G2RS), which provides bankruptcy management services to lenders and creditors for a majority of US bankruptcy filings, showed a slight increase in overall bankruptcy filings in the first quarter of 2025. Despite an overall trend of increasing bankruptcy filings since 2022, filings in the last two quarters of 2024 had flattened, and then decreased. In Q1 2025, filings increased by 0.7% from Q4 of 2024.
When compared against the previous year’s data, Q1 2025 filings were 125,421 versus 116,285 in Q1 of 2024. Forecast filings for the entire year in 2025 are anticipated to increase to 501,000, a 1.38% rise over 2024 totals.
“During the last few quarters, we have seen significant fluctuations in bankruptcy patterns across different regions in the country, but the increase in filings during the first quarter points to a likely rise in bankruptcy activity for the remainder of 2025,” said Ryan Sanders, who leads relationship management with US financial institutions for G2RS bankruptcy intelligence solutions. “However, overall filings still remain below pre-pandemic levels, and we anticipate it will take additional time before those benchmarks are surpassed."
Quarter-over-quarter data, by US region
When looking at quarter-over-quarter changes, the Southeast region led the country in increased bankruptcy filings from Q4 2024 to Q1 2025. The southeast region includes the District of Columbia, Florida, Georgia, Kentucky, Maryland, North Carolina, South Carolina, Tennessee, Virginia, and West Virginia. Within the region, South Carolina (+10.1%) had the highest percentage increase and Tennessee (+326) experienced the largest volume growth.
Year-over-year data, by US region
When looking at all regions of the country in the first quarter of 2025 vs. the first quarter of 2024, the Mountain region of the country experienced the largest percentage growth in bankruptcy filings. This region is composed of Arizona, Colorado, Idaho, Montana, New Mexico, Utah, and Wyoming, has shown a 15.81% increase in filings from Q1 2024. Montana and New Mexico led the region in the filings.
States with highest and lowest YoY bankruptcy growth by volume and percentage
Mountain region
- Montana (+15.6%) led with the high percentage growth and New Mexico (+23) had largest volume growth.
North Central (East)
- Michigan (9.5%) led in both percentage growth and had the largest increase volume growth (+450).
North Central (West)
- Iowa (+6.6%) led in percentage growth and had the largest volume growth (+52).
Northeast Region
- Vermont (+32.65%) led with the highest percentage growth and New Jersey (+160) had the largest volume growth.
Pacific
- Oregon (+31.68%) and (+467) led in both highest percentage growth and largest volume growth.
South (East)
- South Carolina (+10.1%) had the highest percentage increase and Tennessee (+326) had the largest volume growth.
South (West)
- Alabama (+2.47%) led in both highest percentage growth and largest volume growth (+117).