Personal bankruptcy filings have jumped nearly 50% since 2022, according to a new LendingTree analysis, with roughly 1,400 people a day now seeking relief through the courts. The steepest increases are in the South, which means plenty of households here on the Suncoast are feeling the same squeeze: climbing insurance premiums, pricey groceries, health care costs, and credit card interest rates that make minimum payments feel pointless.
Most of those filings are Chapter 7 bankruptcies. They can eliminate many debts, but they also cause severe credit damage that can linger for seven to 10 years — affecting everything from car loans to rental applications. LendingTree analyst Matt Schulz says bankruptcy is rarely a snap decision. It’s usually the end of a long, difficult stretch, and he encourages people to contact creditors early and look into nonprofit credit counseling before things spiral.
There’s a practical takeaway here for anyone feeling the pressure. Schulz notes it’s far easier to tell a creditor, “I might be late this month,” than to admit you’re already three months behind. Free and low-cost nonprofit counseling is available locally, and reaching out early keeps more options on the table.
Have rising costs changed the way your household budgets? Tell us what’s been cut first.
