BURLINGAME, Calif. — U.S. consumer bankruptcy filings edged higher in February while remaining significantly above year-ago levels, signaling mounting financial pressure on households, according to data released by G2 Risk Solutions.
Consumer bankruptcy filings totaled 44,623 in February 2026, a 0.43% increase from January, G2 Risk Solutions said. Compared with February 2025, filings were up 13.3%.
The increase was led by gains in both major categories of consumer bankruptcy. Chapter 7 filings, typically used by the most financially distressed borrowers, rose 15.9% from a year earlier, while Chapter 13 filings, which involve structured repayment plans, increased 8.5%.
Chapter 7 bankruptcy allows for the liquidation of nonexempt assets to discharge unsecured debt, while Chapter 13 enables individuals with regular income to reorganize debt and repay it over time, the company said.
‘Pressure Clearly Building’
“While bankruptcy filings aren’t spiking overnight, February’s data suggests that for consumers, underlying financial pressure is clearly building,” said Ryan Sanders, director at G2 Risk Solutions, in the report. “As consumers face sustained strain from higher costs, rising debt levels, and weakening repayment capacity, we are seeing the early formation of a pipeline that typically leads to increased filing activity over time.”
Sanders added that the nearly 16% increase in Chapter 7 filings indicates more households are reaching a point where repayment is no longer feasible.
Commercial bankruptcy filings presented a mixed trend. Total filings reached 1,239 in February, down 10.9% from January but up 36.3% from a year earlier. G2 Risk Solutions said the level marked the second-highest February total since 2018.
Decline in Commercial Filings
“On the commercial side, though there was a decline in filings month-over-month, the current level is meaningfully above pre-pandemic levels,” Sanders said. “This is a reminder that many companies are being challenged by higher costs and tighter credit conditions, while trying to navigate changes in consumer demand at the same time.”
G2 Risk Solutions said its analysis reflects growing strain across both consumers and businesses as elevated expenses and borrowing costs continue to weigh on financial stability.
