February 2026 Bankruptcy Filings Signal Growing Consumer Financial Stress Beneath US Economy

Consumer filings up 13% year-over-year, while commercial filings reach second-highest February level since 2018 

March 27, 2026 — Burlingame, Calif. — US consumer bankruptcy filings grew slightly in February 2026 over January, according to the newest bankruptcy data tracked and analyzed by G2 Risk Solutions (G2RS). Consumer bankruptcy filings totaled 44,623 in February 2026, representing a 0.43 % increase from January 2026. 

However, when compared against February 2025, last month’s filings were elevated a significant 13.3%. Within consumer filings, Chapter 7 and Chapter 13 consumer filings increased 15.9% and 8.5%, respectively, compared with February 2025. 

Chapter 7 bankruptcy is filed by the most-distressed consumers without the ability to reasonably repay their debt. In Chapter 7, nonexempt assets are liquidated to discharge unsecured debt. In Chapter 13, consumers with regular income can reorganize debt by committing to a structured repayment plan for a determined time period.  

“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 G2RS. “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. The nearly 16% rise in Chapter 7 filings is a sign that more households are reaching a point where debt repayment is no longer feasible.” 

Commercial bankruptcies in February showed a mixed picture. The total 1,239 filings were 10.9% lower than January 2026, but 36.3% higher year-over-year from February 2025. It was the second-highest level recorded in February since 2018.  

“On the commercial side, though there was a decline in filings month-over-month, the current level is meaningfully above pre-pandemic levels,” said Sanders. “This is a reminder that many companies are being challenged by the higher costs and tighter credit conditions, while trying to navigate changes in consumer demand at the same time.” 

About G2 Risk Solutions (G2RS)

G2 Risk Solutions is the expert in risk and compliance business intelligence for financial institutions and online platforms. We are industry pioneers providing market-leading solutions for merchant risk, digital commerce risk, bankruptcy risk, and identity verification. We are driving innovation and shaping the future of risk management through unprecedented data, technology, and global compliance and risk expertise, providing the financial services and digital commerce ecosystems with the tools needed to navigate complex and ever-changing regulatory requirements and mitigate risk. 

To learn more, visit g2risksolutions.com.