States with the Highest Chapter 7 Filing Rate
All states ranked by Chapter 7 liquidation filings per 100,000 residents — where straight bankruptcy discharge is most common.
What This Ranking Tells Us
Chapter 7 is the most common form of bankruptcy, allowing individuals to discharge most unsecured debts in exchange for liquidating non-exempt assets. States with high Chapter 7 rates typically have laws that make this chapter particularly attractive — generous personal property exemptions, means test thresholds that qualify more debtors, and a legal culture oriented toward fresh-start liquidation rather than multi-year repayment plans. For consumers, Chapter 7 offers the fastest path to a clean slate, usually completing within 4-6 months.
| # | State | Per 100K |
|---|---|---|
| 1 | Alabama | 198.5 |
| 2 | Georgia | 190.1 |
| 3 | Nevada | 185.5 |
| 4 | Tennessee | 184.5 |
| 5 | Mississippi | 170.4 |
| 6 | Louisiana | 150.3 |
| 7 | Oklahoma | 139.9 |
| 8 | Utah | 130.7 |
| 9 | Arizona | 120.1 |
| 10 | Hawaii | 119.2 |
| 11 | Kentucky | 118.6 |
| 12 | Indiana | 116.2 |
| 13 | Kansas | 115.1 |
| 14 | Arkansas | 114.6 |
| 15 | Oregon | 111.2 |
| 16 | Missouri | 111.0 |
| 17 | Delaware | 110.3 |
| 18 | West Virginia | 109.9 |
| 19 | Ohio | 109.4 |
| 20 | New Mexico | 109.3 |
| 21 | South Carolina | 105.5 |
| 22 | Illinois | 104.8 |
| 23 | Florida | 104.6 |
| 24 | Michigan | 104.5 |
| 25 | Nebraska | 104.1 |
| 26 | New Jersey | 104.0 |
| 27 | Alaska | 102.0 |
| 28 | Maryland | 99.8 |
| 29 | California | 97.7 |
| 30 | Wyoming | 94.9 |
| 31 | Colorado | 94.6 |
| 32 | North Carolina | 94.6 |
| 33 | Virginia | 92.7 |
| 34 | Iowa | 90.5 |
| 35 | Idaho | 90.1 |
| 36 | Minnesota | 88.3 |
| 37 | Washington | 88.0 |
| 38 | Wisconsin | 85.8 |
| 39 | Pennsylvania | 85.6 |
| 40 | Vermont | 85.6 |
| 41 | New York | 81.3 |
| 42 | Maine | 81.2 |
| 43 | New Hampshire | 78.2 |
| 44 | Rhode Island | 78.0 |
| 45 | Texas | 77.8 |
| 46 | Montana | 76.1 |
| 47 | Massachusetts | 67.2 |
| 48 | District of Columbia | 65.8 |
| 49 | Connecticut | 63.9 |
| 50 | North Dakota | 63.0 |
| 51 | South Dakota | 53.7 |
Source: Administrative Office of the U.S. Courts (AOUSC), Judicial Caseload Statistics.
What This Ranking Actually Shows
This ranking covers 51 jurisdictions with per 100k values sourced from AOUSC Judicial Caseload Statistics. The leading state, Alabama, posts 198.5, while the trailing state, South Dakota, posts 53.7 — a spread of 144.8 points and a ratio of roughly 3.7x between the extremes. The median jurisdiction sits near 104.0, giving a quick sense of where a "typical" state falls versus the leaders and laggards.
The top of this list (Alabama, Georgia, Nevada) and the bottom of this list (South Dakota, North Dakota, Connecticut) are not close substitutes for one another. Chapter 7 is the most common form of bankruptcy, allowing individuals to discharge most unsecured debts in exchange for liquidating non-exempt assets. States with high Chapter 7 rates typically have laws that make this chapter particularly attractive — generous personal property exemptions, means test thresholds that qualify more debtors, and a legal culture oriented toward fresh-start liquidation rather than multi-year repayment plans. For consumers, Chapter 7 offers the fastest path to a clean slate, usually completing within 4-6 months. Differences this large between neighboring states usually reflect structural legal and economic factors — exemption laws, attorney fee conventions, local trustee practices, means-test thresholds tied to state median income, and creditor recovery norms — rather than short-term swings in consumer behavior. Some of these factors change slowly (state statutes), while others shift year to year (median-income thresholds, interest rates).
Rankings describe aggregate populations of court filings across a full fiscal year; they do not predict the result of any single case nor determine whether bankruptcy is the right choice for any individual. A state's position on this list tells you something about the local filing environment, but it does not replace a case-specific analysis of income, assets, secured debt, exemptions, and alternative remedies. This page is statistical information only and is not legal advice; anyone weighing a bankruptcy filing should consult a licensed bankruptcy attorney admitted to practice in the relevant judicial district.
Frequently Asked Questions
What is Chapter 7 bankruptcy?
Chapter 7 is a liquidation bankruptcy where a court-appointed trustee sells the debtor's non-exempt assets to pay creditors, then discharges remaining eligible debts. Most Chapter 7 cases are "no-asset" — meaning the debtor's property is fully covered by exemptions and nothing is liquidated. The process typically takes 4-6 months from filing to discharge. Debtors must pass a means test comparing their income to the state median.
Why is Chapter 7 more common in some states?
State exemption laws are the primary driver. States with generous exemptions (especially unlimited homestead exemptions like Texas and Florida) make Chapter 7 attractive because debtors can keep their homes and other property while discharging debts. The means test threshold also varies by state median income — states with lower medians qualify more debtors for Chapter 7. Attorney fee structures and local court practices also play a role.
How does Chapter 7 differ from Chapter 13?
Chapter 7 discharges most debts within months through liquidation (selling non-exempt assets). Chapter 13 requires a 3-5 year repayment plan where the debtor makes monthly payments to a trustee. Chapter 7 is faster and eliminates debt completely, but Chapter 13 lets debtors keep assets (like a home in foreclosure) while catching up on payments. Income level, asset ownership, and the type of debt determine which chapter is more appropriate.
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Read our methodology — how this data is sourced, computed, and verified.