BURLINGAME, Calif.–Athough the fourth quarter of 2024 broke a two-year trendline of increasing bankruptcy filings in the U.S., total bankruptcies filed during 2024 surpassed 2023 totals by 14.09%, according to data collected by G2 Risk Solutions (G2RS).
In Q4 2024, total filings nationwide decreased by -1.4%, but the total bankruptcy filings for 2024 were 494,169 compared to 433,127 for 2023, the data show.
For 2025, G2RS analysts are forecasting U.S. bankruptcies will continue to increase, growing 12% over 2024.
Within that trendline G2RS said it found several divergent trends, including that during that there are regional differences to be found.
“Though bankruptcy filings are still increasing overall, we are starting to see more variation across states with regional economic differences,” Ryan Sanders, who leads relationship management of U.S. financial institutions at G2RS bankruptcy intelligence solutions, said in a statement. “Filings are expected to continue increasing over the next two years, but this growth may be propelled by certain states instead of across-the-board increases.”
Sanders said total U.S. filings have not reached pre-pandemic levels but are trending back in that direction.
According to G2RS, four regions experienced decrease in filings in Q4 2024, including’
- Mountain (Arizona, Colorado, Idaho, Montana, New Mexico, Utah, and Wyoming)
- North Central West
- Pacific (Alaska, California, Hawaii, Nevada, Oregon, and Washington)
- Southeast (District of Columbia, Florida, Georgia, Kentucky, Maryland, North Carolina, South Carolina, Tennessee, Virginia, and West Virginia
Bankruptcy Increases
Regions Experiencing an Increase in 2024 included:
- North Central East (Illinois, Indiana, Michigan, Ohio, and Wisconsin)
- Northeast (Connecticut, Delaware, Massachusetts, Maine, New Hampshire, New Jersey New York, Pennsylvania, Rhode Island, and Vermont)
- Southwest (Alabama, Arkansas, Louisiana, Mississippi, Oklahoma, and Texas)
The Southeast experienced largest total increase in filings for 2024, the company said.
“Even though the Southeast region experienced a decrease in filings during Q4, when looking at yearly totals, it led the country in overall growth for 2024,” the company said. “Southeast filings increased to 133,028, which is up from 119,342 in 2023. Florida had the highest filing growth in volume and percentage within the region.”
The region with the lowest overall growth for 2024 was the North Central West, which increased to 28,436 in 2024 from 25,686 in 2023, according to G2RS.
The State Leaders
The states that were leaders in regional bankruptcy filings during 2024 include:
Mountain
Colorado (+26.7%) leads with the highest percentage growth; Arizona (+1,720 units) and Colorado (+1,579 units) have the largest absolute volume growth.
North Central East
Wisconsin (+15.2%) leads in percentage growth, and Ohio (+3,027 units) has the largest absolute volume growth.
North Central West
Minnesota (+25.2%) leads in percentage growth and has the largest absolute volume growth (+1,701).
Northeast
Massachusetts (+22.6%) has the highest percentage growth, and New York (+1,838 units) has the largest absolute volume growth.
Pacific
Washington (+28.0%) leads with the highest percentage growth, and California (+8,689 units) shows the largest absolute volume growth.
Southeast
Florida (+25.9%) has the highest percentage increase, demonstrating the largest absolute volume growth (+7,281).
Southwest
Texas (+25.3%) has the highest percentage growth and shows the largest absolute volume growth (+5,875).