Bankruptcy filings are up 80% since 2022. That number should change how you think about recovery.

For years, filings were suppressed by stimulus and relief programs. Now that support is gone, filings are rising again.

– More consumers entering bankruptcy
– Rising Chapter 7 cases
– Growing reliance on Chapter 13 repayment plans
– Continued volatility in business filings

This is the new environment.

The Problem with Old Thinking

Most creditors still treat bankruptcy like a dead end: charge off and move on.

But bankruptcy restructures debt—it doesn’t erase recovery potential.

Where Value Gets Lost

Many creditors don’t track accounts, overlook repayment activity, and leave value untapped.

What Needs to Change

Creditors must stop treating bankruptcy as inactive and build strategies around structured recovery.

Bottom Line

Bankruptcy volume is rising. Recovery opportunity is rising with it.