With Xmas Looming, WA State Sees Apparent Uptick in Bankruptcies

A new study by the personal injury law firm Injured in Florida has identified the U.S. states with the highest increases in bankruptcy filings from June 2023 to June 2024.

Adjusting data for population size per 100,000 residents, Delaware topped the list with a 61.7% increase in bankruptcy cases, rising from 168 to 271 filings, and a 35% increase in terminated cases. (Delaware is the home state of outgoing President Joe Biden, who in his Senate days fought successfully to make bankruptcy laws more stringent.)

Washington followed with a 36.5% rise, from 73 to 100 cases filed.

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New Mexico and Oregon also saw significant rises of 33.6% and 32.7%, respectively. Nevada experienced a 29.1% increase, while California, Minnesota, Texas, Maryland and Florida also saw substantial rises.

The study highlights factors like consumer debt, medical expenses, job losses and rising living costs as key drivers of this increase. Other economic challenges - namely inflation, high interest rates and concerns about a potential recession - are straining personal finances, contributing to more bankruptcy filings.

"Additionally," warns a spokesperson for Injured in Florida, "growing credit card balances and personal loans, when used excessively, can become difficult to fully repay."

"Rising costs for food, housing and healthcare are also contributing to financial strain, alongside layoffs in certain industries. Without a steady income, it becomes nearly impossible to stay afloat, leading more people to file for bankruptcy."

“These financial pressures have forced individuals, businesses and organizations to seek bankruptcy protection due to overwhelming expenses and financial obligations.”

As for the firm's methodology, "Bankruptcy data was collected from the United States Courts from the period of 30th June 2023 to 20th June 2023. The data provided total counts for bankruptcy filings and terminations. Data is normalized by population from the United States Census Bureau to get per 100,000 residents per state. States were then ranked by their per 100k metric."