Business bankruptcy filings have increased nationwide by nearly 12% in one year, according to a new LendingTree analysis. The total number of filings rose from 23,154 in the 12 months that ended March 31, 2025, to 25,796 in the 12 months ended March 31, 2026.

State-by-State Breakdown

Delaware has the highest business bankruptcy filing rate in the US, with 538.9 filings per 100,000 small businesses. Texas has the greatest number of businesses that filed for bankruptcy, with more than 4,500 filings. Louisiana and New Jersey have the largest year-over-year increases in business bankruptcy filings, with increases of 84% and 80%, respectively.

The growing increase in business bankruptcy filings is attributed to higher borrowing costs, lingering inflation, and softer demand. LendingTree’s chief consumer finance analyst, Matt Schulz, stated that this trend is worth paying attention to, as it shows that many businesses are struggling to stay afloat.

Nationwide, 93% of bankruptcy filings fell into two US Bankruptcy Code categories: Chapter 7 and Chapter 11. Chapter 7 filings generally involve a business liquidating assets, while Chapter 11 allows a business to reorganize debts while continuing operations.

Original reporting: KTBS 3 (Shreveport) — read the source article.