Filings are down slightly from July 2025, but consumer cases remain elevated year-over-year
New monthly bankruptcy data from G2 Risk Solutions (G2RS) shows some divergence between consumer and commercial filings trends in August 2025. Consumer filings edged down slightly by 3.02% from July 2025 but remain 6.24% higher on a YoY basis. Meanwhile, commercial filings decreased by 21.69% from July 2025 and by 2.44% on a YoY basis.
G2RS provides bankruptcy management services to US lenders and creditors in the majority of cases filed in July and August.
“The consumer bankruptcy data from August suggests that, despite the slight decrease from July, household budgets are still under pressure. Filings remaining higher than 2024, and the August Chapter 13 filings reached their highest level in five years,” said Ryan Sanders, director at G2RS. “G2RS analysts are predicting that 2025 will end with more consumer bankruptcies than in 2024. As a result, lenders may want to consider monitoring consumer credit risk closely.”
Total consumer filings reached 46,857 in August as compared to 48,316 in July. Sanders noted that Chapter 13 cases reached 17,967 in August and are often linked to mortgage stress, student loan repayments, and increased access to credit via fintech lenders.
Commercial filings for August were 1,040, compared to 1,328 in July. Though August saw a significant dip in the number of commercial bankruptcy filings, the broader picture shows filings remain elevated compared to pre-pandemic norms. For reference, the number of commercial filings in August of 2019 was 872.
The YoY increase in commercial filings between 2024 and 2025 to date is 30.6%. Commercial filings continue to remain structurally higher than pre-pandemic levels.
“We will continue to monitor data trends for the remainder of the year to determine if the August dip is a signal of stabilization, or otherwise,” said Sanders. “How the rest of the year plays out for both commercial and consumer bankruptcies will depend on broader economic trends, but recent indicators seem to suggest headwinds that may point to an acceleration in both consumer and business filings. Either way, the baseline for filings appears to have shifted higher.”