Chapter 7 — Liquidation Bankruptcy
Open-data reference.
National trend FY2015–FY2024 · 60.2% of all filings in FY2024
Statistical information only — not legal advice. Consult a bankruptcy attorney for guidance on your specific situation.
What is Chapter 7?
The most common form of bankruptcy. Eliminates most unsecured debts — credit cards, medical bills, personal loans — after a court-appointed trustee liquidates non-exempt assets. Most filers have few non-exempt assets.
Who Files
Individuals and businesses with little income or assets who want a fresh start. Requires passing the means test (income below state median or disposable income too low).
Timeline
Typically 4–6 months from filing to discharge.
FY2024 National
352,522
Total Chapter 7 filings
60.2%
Share of all bankruptcy filings
Chapter 7 Filings by Year
States Ranked by Chapter 7 Filings
| Rank | State | Ch. 7 Filings |
|---|---|---|
| 1 | California | 38,073 |
| 2 | Texas | 23,731 |
| 3 | Florida | 23,649 |
| 4 | Georgia | 20,962 |
| 5 | New York | 15,905 |
| 6 | Illinois | 13,149 |
| 7 | Tennessee | 13,149 |
| 8 | Ohio | 12,895 |
| 9 | Pennsylvania | 11,089 |
| 10 | Michigan | 10,487 |
| 11 | Alabama | 10,139 |
| 12 | North Carolina | 10,126 |
| 13 | New Jersey | 9,885 |
| 14 | Arizona | 8,923 |
| 15 | Virginia | 8,079 |
| 16 | Indiana | 7,971 |
| 17 | Louisiana | 6,875 |
| 18 | Missouri | 6,875 |
| 19 | Washington | 6,875 |
| 20 | Maryland | 6,165 |
| 21 | Nevada | 5,924 |
| 22 | Oklahoma | 5,671 |
| 23 | South Carolina | 5,671 |
| 24 | Colorado | 5,563 |
| 25 | Kentucky | 5,370 |
| 26 | Minnesota | 5,069 |
| 27 | Wisconsin | 5,069 |
| 28 | Mississippi | 5,009 |
| 29 | Massachusetts | 4,708 |
| 30 | Oregon | 4,708 |
| 31 | Utah | 4,467 |
| 32 | Arkansas | 3,516 |
| 33 | Kansas | 3,384 |
| 34 | Iowa | 2,902 |
| 35 | Connecticut | 2,313 |
| 36 | New Mexico | 2,312 |
| 37 | Nebraska | 2,059 |
| 38 | West Virginia | 1,951 |
| 39 | Idaho | 1,770 |
| 40 | Hawaii | 1,710 |
| 41 | Maine | 1,139 |
| 42 | Delaware | 1,138 |
| 43 | New Hampshire | 1,096 |
| 44 | Montana | 855 |
| 45 | Rhode Island | 855 |
| 46 | Alaska | 748 |
| 47 | Vermont | 554 |
| 48 | Wyoming | 554 |
| 49 | North Dakota | 494 |
| 50 | South Dakota | 494 |
| 51 | District of Columbia | 447 |
What the Chapter 7 Data Shows
Nationally, Chapter 7 (Liquidation Bankruptcy) filings totaled 352,522 in FY2024, representing 60.2% of all bankruptcy petitions filed in federal court that year. Across the 10-year window AOUSC publishes (FY2015–FY2024), Chapter 7 volumes fell 49.0% — from 691,880 in the earliest year to 352,522 most recently. The most common form of bankruptcy. Eliminates most unsecured debts — credit cards, medical bills, personal loans — after a court-appointed trustee liquidates non-exempt assets. Most filers have few non-exempt assets.
Who uses this chapter: Individuals and businesses with little income or assets who want a fresh start. Requires passing the means test (income below state median or disposable income too low). Expected timeline: Typically 4–6 months from filing to discharge. Geographic concentration is substantial — in FY2024, California alone recorded 38,073 Chapter 7 filings, and the highest-volume states include California, Texas, Florida, Georgia, New York. These distributions are not random: they are shaped by state exemption laws, the means-test income threshold for Chapter 7 eligibility, local trustee and court practices, attorney fee conventions, and homeownership rates that influence whether debtors choose liquidation or repayment paths.
These statistics describe the overall population of Chapter 7 cases; they do not predict the outcome of any individual filing. Chapter 13 plan completion rates, Chapter 7 discharge denials, Chapter 11 plan confirmations, and Chapter 12 operational-restructuring success all vary widely by district, debtor circumstance, and creditor posture. This page is statistical information only and is not legal advice; anyone considering whether Chapter 7 is appropriate for their situation should consult a licensed bankruptcy attorney who can evaluate income, assets, debt composition, and the specific rules of the relevant judicial district.
Frequently Asked Questions
What is Chapter 7 bankruptcy?
The most common form of bankruptcy. Eliminates most unsecured debts — credit cards, medical bills, personal loans — after a court-appointed trustee liquidates non-exempt assets. Most filers have few non-exempt assets.
Who is eligible to file Chapter 7?
Individuals and businesses with little income or assets who want a fresh start. Requires passing the means test (income below state median or disposable income too low).
How long does Chapter 7 take?
Typically 4–6 months from filing to discharge.
How many Chapter 7 cases were filed in FY2024?
There were 352,522 Chapter 7 bankruptcy filings nationally in FY2024, representing 60.2% of all bankruptcy filings. Filing data is from the Administrative Office of the U.S. Courts.
Which states have the most Chapter 7 filings?
The top states for Chapter 7 filings in FY2024 are California, Texas, Florida. State-level filing rates reflect differences in exemption laws, income levels, and economic conditions.
Bankruptcy Guides
Chapter 7 vs Chapter 13
Data-driven comparison of the two most common filing types.
The Means Test
How income determines Chapter 7 eligibility.
State Exemptions
What assets you can protect in bankruptcy.
Bankruptcy Timeline
From filing to discharge, step by step.
Business Bankruptcy
Chapter 11 restructuring trends and patterns.
Related Financial Data
PlainAttorney
Attorney discipline records and state bar actions — find qualified bankruptcy attorneys.
PlainCredit
Consumer credit scores and debt levels by state — context for bankruptcy rates.
PlainLender
Mortgage lending data and origination stats — housing debt drives many filings.
PlainTaxData
Federal tax statistics by state — tax debt is a common bankruptcy trigger.
Read our methodology — how this data is sourced, computed, and verified.
All federal data sources used on this page
- U.S. Courts Bankruptcy Statistics — federal bankruptcy filing data by chapter + district. uscourts.gov/data-news/bankruptcy-data
- PACER (Public Access to Court Electronic Records) — individual case docket access. pacer.uscourts.gov
- DOJ U.S. Trustee Program — federal oversight of bankruptcy cases. justice.gov/ust
- CFPB Consumer Credit Trends — Bankruptcy — consumer-finance + bankruptcy correlation. consumerfinance.gov/data-research/consumer-credit-trends
- IRS Treasury Offset Program — discharge-related federal tax data. irs.gov/businesses/declaring-bankruptcy
- U.S. Census Bureau ACS — household economic context for filing-rate analysis. census.gov/programs-surveys/acs