Rising Bankruptcy Filings: What It Means for Those Considering Bankruptcy in 2025
- McMann, P.A.
- Mar 17
- 2 min read
Bankruptcy filings have been on the rise since late 2024, with both personal and business bankruptcies increasing nationwide. Economic pressures, high interest rates, inflation, and shifting market conditions are creating financial distress for many individuals and companies.
At McMann, P.A., Attorney Mark McMann is here to help individuals in Lakeland, Tampa, Orlando, and across Central Florida understand what this trend means for their financial future and how to navigate the bankruptcy process if needed.
Why Are Bankruptcy Filings Increasing?
Several key economic factors are contributing to the surge in bankruptcy filings:
High Interest Rates: The Federal Reserve’s rate hikes over the past two years have made borrowing more expensive, leading to increased credit card debt and loan defaults.
Rising Cost of Living: Inflation continues to impact everyday expenses, making it harder for individuals to stay financially afloat.
Layoffs and Job Market Shifts: Some industries are experiencing slowdowns, leading to job losses and financial instability.
Medical Debt and Unaffordable Housing Costs: Rising healthcare costs and expensive housing markets are pushing more people toward financial hardship.
What This Means for Individuals Considering Bankruptcy
If you are struggling with debt, the rising trend in bankruptcy filings suggests that more people are recognizing bankruptcy as a necessary tool for financial recovery. Here’s what you need to consider:
More filings could lead to longer processing times in bankruptcy courts due to increased case loads.
Creditors may become more aggressive in their collection efforts, making early bankruptcy planning more important.
Qualifying for Chapter 7 or Chapter 13 may become stricter if financial regulations or means test thresholds change.
Is Bankruptcy Right for You?
If you are facing overwhelming debt, bankruptcy may provide relief. The two most common types of personal bankruptcy are:
Chapter 7 Bankruptcy – Eliminates unsecured debt, such as credit cards and medical bills, but may require liquidation of non-exempt assets.
Chapter 13 Bankruptcy – Allows for a structured repayment plan, helping individuals catch up on missed mortgage or car payments.
Signs you may need to consider bankruptcy: ✔ You are using credit cards to cover daily expenses. ✔ You are behind on mortgage or rent payments. ✔ You are receiving collection calls or facing lawsuits. ✔ Your wages are being garnished due to unpaid debts.
How to Prepare for a Possible Bankruptcy Filing
Given the rise in bankruptcies, preparing early can be beneficial. Here’s how:
Assess Your Debt – Identify which debts are dischargeable and which aren’t (e.g., student loans, certain taxes, and child support typically cannot be erased).
Avoid Taking on More Debt – If you suspect bankruptcy may be in your future, refrain from making large purchases on credit.
Consult an Attorney Early – The sooner you speak with a bankruptcy attorney, the more options you’ll have to protect assets and plan effectively.
McMann, P.A. Can Help You Regain Financial Stability
If you are considering bankruptcy, you are not alone. McMann, P.A. is dedicated to helping individuals in Florida understand their options and navigate the bankruptcy process.
Mark D. McMann
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