US bankruptcy filings hit 15-year high, signaling economic distress
Bankruptcy filings in the US just hit their highest level since 2020, jumping over 10% in the past year to more than half a million cases.
Both regular people and big companies are feeling the squeeze—major names like Spirit Airlines and Claire's have filed for bankruptcy, showing how tough things have gotten financially.
Even large corporate bankruptcies are reaching a 15-year high, hinting at recession-level stress.
Why is this happening?
Experts say rising prices and stricter lending are making it harder for everyone to keep up.
Small businesses are especially at risk right now; as Professor Pamela Foohey puts it, unless things turn around soon, even more could be pushed over the edge in coming months.
The numbers from October show no slowdown yet—bankruptcies were up 12% compared to last year—so financial pressure is still building across the board.