Individuals made 444,252 filings from January to September, while businesses made 25,467 filings, up 7%, the ABI said [1].

"The continued increase in bankruptcy filings reflects the strain of higher borrowing costs, rising household expenses, growing consumer delinquencies, and a softer job market," Michael Hunter, vice president of bankruptcy data provider Epiq AACER, said in the statement [1].

Consumer Filings Reflect Borrowing Costs, Delinquencies, Job Market

The average weekly rate on a 30-year fixed-rate mortgage is at its highest level in roughly three years, and the credit card interest rate has been above 20% for more than three years, according to the source material [1]. These borrowing costs are straining household budgets as wage growth fails to keep pace with expenses.

Joelle Scally, economic policy adviser at the New York Federal Reserve, said in an Aug. 11 statement that new consumer delinquencies for credit cards and auto loans "remain at elevated levels" [1]. The combination of high interest rates and rising delinquencies places additional pressure on consumers already struggling with inflation.