U.S. Business Bankruptcy Trends and Industry Impacts | 2026 Update

Business bankruptcies have risen steadily since 2023, reflecting a broad-based increase in financial stress across the economy. After reaching historically low levels during and immediately following the pandemic, filings have increased for three consecutive years, driven by higher interest rates, inflation, tighter credit conditions, rising labor costs, and mounting debt burdens. The first half of 2026 indicates that the upward trend remains intact, particularly among small and middle-market companies.