You Must Know These 26 Shocking Bankruptcy Statistics by 2022

You Must Know These 26 Shocking Bankruptcy Statistics by 2022

You Must Know These 26 Shocking Bankruptcy Statistics by 2022

You Must Know These 26 Shocking Bankruptcy Statistics by 2022 According to bankruptcy data, major crises frequently impact the financial stability of individuals, businesses, and even entire nations. Given that a pandemic is currently threatening the global community, it is crucial to gauge the scope of its impact.

Let’s take a look at some global statistics that cover a wide range of fields, nations, etc.

Facts and Figures about the Top 10 Bankruptcies


  • There will be a mark on your credit report for 7-10 years if you’ve filed for bankruptcy.
  • In 2008, the United States experienced the largest bankruptcy filing ever.
  • In 2021, California received as many as 4,866 bankruptcies.
  • In 2021, there was a decline in the number of banksrupt US corporations.
  • One of the leading reasons for personal bankruptcy in the United States is unexpected medical bills.
  • In 2022, bankruptcies among corporations are forecast to remain low.
  • In 2020, the number of bankruptcies in Sweden increased.
  • In 2020, the rate of personal bankruptcies in the Netherlands was among the lowest ever recorded.
  • In 2022, we anticipate a continued low rate of business bankruptcies.
  • As a result of government assistance, businesses were able to survive the COVID outbreak.

Statistics on Bankruptcies in the U.S.

Check out the most interesting data on bankruptcies in the United States, including the most recent numbers, the evolution of bankruptcy practises over time, the largest bankruptcies in history, and more.

It takes 7-10 years for a bankruptcy to drop off your credit report. 1.

(Source: Experian)

Your credit score will take a hit after filing for bankruptcy, but you can start to recover after a while. Until then, maintain positive credit habits like timely bill payment and repayment of any debts you may have.

In 2008, the United States saw the largest bankruptcy filing ever.

(Source: Statista)

Statistics on US bankruptcies show that on September 15, 2008, global financial services firm Lehman Brothers filed the largest US bankruptcy petition (as of 2019). At the time of the bankruptcy filing, the company’s assets were valued at $691 billion.

Number of Chapter 7 bankruptcies filed in 2010 was the highest in the past two decades.

(Source: Statista)

The filing of Chapter 7 bankruptcies in the United States reached a record high of 1,139,601 in 2010. When filing for Chapter 7 bankruptcy, the debtor must sell off all of their possessions to pay off as much of their debt as possible.

The number of Chapter 7 bankruptcies filed in the United States in 2020 was only 378,953.

(Source: Statista)

When looking at the bankruptcy filings for 2020 versus 2019, it is clear that there will be a dramatic decrease. To be more specific, in 2019, US residents filed 483,988 Chapter 7 bankruptcies.

You Must Know These 26 Shocking Bankruptcy Statistics by 2022

5. In 2005, there was a record number of individual bankruptcies in the United States, surpassing the previous high set in 1995.

(Source: Statista)

Over two million and thirty-nine thousand and fourteen personal bankruptcies were filed in 2005. The number of individual bankruptcies dropped to 522,808 in 2020, a fall of roughly four times in 15 years.

In the United States, Chapter 13 bankruptcies decreased in 2020.

(Source: Statista)

The number of Chapter 13 bankruptcies filed in 2020 fell from 283,413 in 2019 to 156,377 in 2020, a decrease of 127,036.

In Chapter 13 bankruptcy, the conditions of a loan are modified so that payments are spread out over a longer period of time.

7.Seventy percent fewer states will file for bankruptcy in 2020 than they did in 2010, according to data from individual states.

(Statista’s data)

Included in this group are the states of Washington, California, Alaska, Nevada, Colorado, Vermont, New Hampshire, Massachusetts, Rhode Island, and Maine. Bankruptcy filings fell by less than half nationally, but only in Mississippi, Alabama, and South Carolina.

The Current State of Corporate Bankruptcies in the United States

Now that we’re all up to speed on the bankruptcy landscape in the US as a whole, it’s time to examine some business-related statistics to get a sense of how well (or poorly) American corporations have been doing lately.

This is the place to go if you want to know the latest bankruptcy statistics, such as the total number of bankruptcies filed in a given year or the breakdown of those filings by type (individual or business).

In 2009, there was a record number of business failures compared to the previous two decades.

(Source: Statista)

The 2008 financial crisis is likely to have contributed to the unprecedented number of 60,837 business bankruptcies in the United States during that time. 2006, on the other hand, saw the fewest corporate bankruptcies ever.

In 2020, there were 21,655 corporate bankruptcy in the United States.

(Source: Statista)

When compared to the numbers from 2019, this was an increase (when 22,780 business bankruptcies were filed).

In 2009, an all-time high of Chapter 11 business bankruptcies were filed in the United States.

(Source: Statista)

In 2009, as many as 13,683 applications were submitted. The number of filings has been declining gradually since then, reaching a low point in 2014. (when it reached 6,093). Constantly hovering around 6,000 from 2014 to 2020, the number finally topped 6,375 in 2020.

11 Even after filing for bankruptcy, a business may be eligible for a loan.

(Source: Small Business Trends)

Although it may take some careful planning and hard work, it is possible to obtain a small business loan after a bankruptcy filing.

Between June of 2020 and June of 2021, the Lone Star State saw the largest number of Chapter 11 bankruptcies filed by businesses.

(Source: Statista)

During this time, businesses in Texas filed for bankruptcy 1,572 times under Chapter 11. To be sure, Delaware was not far behind with 1,241 registrations. Conversely, Vermont has the fewest Chapter 11 bankruptcy filings for businesses (only two). 2021, fewer American businesses filed for bankruptcy.

(Source: Reuters)

As reported by ReutersOnce at an all-time high in 2020 because to the COVID-19 crisis, when many enterprises shut down, commercial bankruptcies began falling in 2021 and reached a record low the following year.

Chapter 7 and Chapter 11 bankruptcies combined were only 18,511 in June 2021, the lowest annual total since 1985 and a decline of 17.7 percentage points from the previous year.

14 In 2022, there is forecast to be a continued low number of business bankruptcies.

(Source: SP Global)

Many businesses are able to weather the COVID storm thanks to the federal stimulus cheques and private credit. Therefore, analysts believe that the number of businesses declaring bankruptcy will remain historically low through at least the end of 2022, if not 2023.

Insolvency and Medical Care

Experiencing a medical emergency can have a devastating effect on one’s finances, potentially leading to insolvency.

Let’s dig in closer to discover specifics such as the age of the average medical debtor, the percentage of bankruptcies caused by health issues, and more.

When it comes to personal bankruptcies, medical bills are by far the most common contributor in the United States.

(Source: Investopedia)

A staggering 66.5% of bankruptcies in the United States in 2019 were attributed to high medical expenses and time off work, according to a study published in 2019.

In 2021, 50% of Americans had some sort of medical debt.

(Source: Forbes)

Recent times have seen an increase in the percentage of people carrying medical debt, from 46% in 2020 to 50% in 2021, most likely as a result of the pandemic. In 2021, the majority of Americans (57%) had medical debt of at least $1,000 from procedures such as diagnostic tests, emergency room visits, and inpatient stays.

17 In 2020, Americans aged 18-39 were more likely to be concerned about going bankrupt as a result of a serious health crisis.

(Source: Statista)

Statistical evidence suggests that mounting medical expenses are a leading cause of personal bankruptcy, so it is reasonable to be concerned about this possibility. Fifty-five percent of those surveyed between the ages of 18 and 29 and fifty-five percent of those surveyed between the ages of 30 and 49 expressed concern that a major health crisis in their household could lead to bankruptcy by the year 2020.

In 2019, those numbers dropped drastically (43% of those aged 18-29 and 46% of those aged 39-49 reported having similar fears).

At the $1,000-$5,000 range, 34 percent of Americans are in the red due to medical bills.


According to the results of the survey, 23% of people have medical debts between $500 and $1,000, while 20% owe less than $500. The remaining 11% have debts between $5,000 and $10,000, while only 1% have debts of $150,000 or more.

Medical bills are the most expensive on average in the South.

(Source: JAMA Network)

In 2020, 23.8% of Southerners, on average, had medical debt (with balances averaging $616).

However, the Northeast had the lowest medical debt, at just 10.8% of residents there carrying a mean stock of $167 in such debt.

Surprising Statistics Around the World

Learn how the global pandemic has impacted bankruptcy rates in various nations by reading about current bankruptcy patterns around the world.

Let’s just jump right in!

According to bankruptcy data, 1,690 people in Belgium lost their jobs in January of 2022.

(Source: Statista)

Considering that 4,128 people lost their jobs in the last decade and a half in Belgium owing to this cause, this is a comparatively low number (recorded in October 2012).

May 2020 marked the month with the fewest bankruptcies and the fewest resulting job losses (when only 604 Belgians lost jobs for this reason).

21. In 2020, there was a spike in the number of bankruptcies filed in Sweden.

(Source: Statista) 

In 2020, a greater proportion of businesses across many sectors filed for bankruptcy. An astounding 86 percent more Chapter 11 petitions were filed in the used-car market in June than in any other month, while April was the “deadliest” month for the hospitality industry, with 141 percent more petitions filed.

There were 928 fewer bankruptcies filed by Swiss residents in 2020 compared to 2019.

(Source: Trading Economics)

The number of bankruptcies filed in Switzerland fell from 13,840 in 2019 to 12,912 in 2020. Even with this decline, Switzerland still has the highest rate of bankruptcy filings in all of Europe.

For some reason, 2018 was the worst year on record for bankruptcies in Switzerland.

(Source: Trading Economics) 

It was the greatest number of bankruptcies in Switzerland since 2012, with a total of 13,971, according to official statistics.

The 24th worst month for Hong Kong businesses in 2021 was March.

(Source: Trading Economics)

During that time, 18,709 business files for bankruptcy were received. A total of 11,089 companies will have declared bankruptcy by the end of 2021.

In 2020, the bankruptcy rate in the Netherlands was the lowest it has ever been.

(Source: CBS)

Bankruptcy rates rose in most of the world and the EU during the epidemic, but in the Netherlands they fell. As of Q2 2020, the number of bankruptcies had begun to decline, from 65.4 in Q2 2020 to 31.4 in Q1 2021.

In order to avert a repeat of the 2009 financial crisis, the government provided aid to businesses to help them weather the COVID storm.

(Source: Bloomberg)

Bankruptcies in Europe did not spike as much as many had feared they would during the COVID crisis. The decrease in filings for bankruptcy may be attributable, in part, to government aid and loans.

While current bankruptcy statistics show a relatively low incidence of corporate insolvencies, experts caution that this is not necessarily indicative of a healthy business climate.


A terrible prospect is incurring so severe financial losses that filing for bankruptcy is the only option left. However, if you’re an entrepreneur, declaring bankruptcy doesn’t have to be the end of the world.

These numbers should have demonstrated how prevalent bankruptcies really are around the world and how feasible it is to bounce back from a financial disaster.