So If You’re Struggling, You’re Not Alone.
If it feels like everyone around you is stretched thinner than ever, the numbers back that up. Individual bankruptcy filings rose 12% in the first half of 2026 compared to the same period last year — nearly 300,000 people sought relief in just six months. Total household debt has climbed to $18.8 trillion, and delinquencies are rising across credit cards, mortgages, and auto loans. Foreclosure filings alone jumped 26% in the first quarter.
Behind every one of those numbers is a person who thought they were the only one struggling — the only one hiding calls from collectors, avoiding the mailbox, or lying awake doing math that never quite works out. They’re not. Inflation, high interest rates, and tighter credit have squeezed millions of households at once, and the filing data simply confirms what a lot of people are already feeling: this is harder than it used to be, and it’s not a personal failure.
What the surge actually means for you
A rising national number doesn’t change your individual situation, but it does change the context. Bankruptcy courts, trustees, and attorneys are seeing more filings because more households are genuinely in over their heads — not because standards have loosened or people are taking shortcuts. If you’ve been putting off a conversation about your options because you feel embarrassed, the data is a good reason to let that go.
Chapter 7 or Chapter 13 — what’s the difference?
Chapter 7 can discharge unsecured debt like credit cards and medical bills relatively quickly, for those who qualify. Chapter 13 sets up a repayment plan over three to five years and can help you catch up on a mortgage or car loan while keeping the property. Which one fits depends on your income, assets, and goals — and that’s exactly the kind of thing worth a real conversation rather than a guess.
The fresh start is still the point
Bankruptcy law exists because the system recognizes that people deserve a way out from under debt that has become unmanageable — not as a punishment, but as a reset. If the rising numbers tell us anything, it’s that more people are reaching that point every month. If you’re one of them, the next step isn’t to wait until things get worse. It’s to find out what your options actually look like.
If you’re carrying debt that feels unmanageable, a free consultation can tell you where you stand — no judgment, no obligation.
You can set up an appointment for a free consultation on my Appointment page, or email me at martha@bankruptcysage.com
#Bankruptcy #ConsumerLaw #DebtRelief #FreshStart