States with the Highest Bankruptcy Filing Rate
All 50 states and DC ranked by total bankruptcy filings per 100,000 residents — where financial distress is most concentrated.
What This Ranking Tells Us
The bankruptcy filing rate measures total filings across all chapters relative to population size. States topping this list experience the highest levels of consumer and business financial distress per capita. High filing rates often correlate with generous state exemptions that make bankruptcy more attractive, high consumer debt levels, lower median incomes, and limited access to alternative debt relief. Southern states historically dominate this ranking due to a combination of lower incomes, higher medical debt, and state laws that channel debtors toward bankruptcy rather than informal workouts.
| # | State | Per 100K |
|---|---|---|
| 1 | Alabama | 329.7 |
| 2 | Georgia | 315.7 |
| 3 | Nevada | 308.1 |
| 4 | Tennessee | 306.5 |
| 5 | Mississippi | 283.1 |
| 6 | Louisiana | 249.7 |
| 7 | Oklahoma | 232.4 |
| 8 | Utah | 217.1 |
| 9 | Arizona | 199.5 |
| 10 | Hawaii | 198.0 |
| 11 | Kentucky | 197.1 |
| 12 | Indiana | 193.0 |
| 13 | Kansas | 191.1 |
| 14 | Arkansas | 190.4 |
| 15 | Oregon | 184.7 |
| 16 | Missouri | 184.3 |
| 17 | Delaware | 183.3 |
| 18 | West Virginia | 182.6 |
| 19 | Ohio | 181.8 |
| 20 | New Mexico | 181.7 |
| 21 | South Carolina | 175.3 |
| 22 | Illinois | 174.0 |
| 23 | Florida | 173.7 |
| 24 | Michigan | 173.6 |
| 25 | Nebraska | 172.9 |
| 26 | New Jersey | 172.8 |
| 27 | Alaska | 169.4 |
| 28 | Maryland | 165.7 |
| 29 | California | 162.3 |
| 30 | Wyoming | 157.7 |
| 31 | Colorado | 157.2 |
| 32 | North Carolina | 157.2 |
| 33 | Virginia | 154.0 |
| 34 | Iowa | 150.3 |
| 35 | Idaho | 149.7 |
| 36 | Minnesota | 146.8 |
| 37 | Washington | 146.2 |
| 38 | Wisconsin | 142.5 |
| 39 | Vermont | 142.2 |
| 40 | Pennsylvania | 142.1 |
| 41 | New York | 135.0 |
| 42 | Maine | 134.9 |
| 43 | New Hampshire | 129.9 |
| 44 | Rhode Island | 129.7 |
| 45 | Texas | 129.2 |
| 46 | Montana | 126.6 |
| 47 | Massachusetts | 111.7 |
| 48 | District of Columbia | 109.3 |
| 49 | Connecticut | 106.2 |
| 50 | North Dakota | 104.7 |
| 51 | South Dakota | 89.3 |
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 329.7, while the trailing state, South Dakota, posts 89.3 — a spread of 240.4 points and a ratio of roughly 3.7x between the extremes. The median jurisdiction sits near 172.8, 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. The bankruptcy filing rate measures total filings across all chapters relative to population size. States topping this list experience the highest levels of consumer and business financial distress per capita. High filing rates often correlate with generous state exemptions that make bankruptcy more attractive, high consumer debt levels, lower median incomes, and limited access to alternative debt relief. Southern states historically dominate this ranking due to a combination of lower incomes, higher medical debt, and state laws that channel debtors toward bankruptcy rather than informal workouts. 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 does the bankruptcy filing rate measure?
The filing rate is the total number of bankruptcy petitions filed in a state's federal courts during a fiscal year, divided by the state's population and multiplied by 100,000. A rate of 300 means roughly 300 out of every 100,000 residents filed for bankruptcy that year. This includes all chapters: Chapter 7 (liquidation), Chapter 13 (repayment plan), Chapter 11 (reorganization), and Chapter 12 (family farmer/fisherman).
Why do some states have much higher filing rates?
Several factors drive geographic variation: state exemption laws (generous homestead exemptions in some states make Chapter 7 more attractive), local economic conditions (unemployment, wage levels, industry mix), medical debt burden, attorney marketing and fee structures, judicial district practices, and cultural attitudes toward bankruptcy. States with lower median incomes and higher consumer debt-to-income ratios tend to have elevated filing rates.
How does bankruptcy filing rate relate to economic health?
Filing rates are a lagging indicator of financial distress — they reflect accumulated debt problems rather than current economic conditions. A spike in filings typically follows 12-18 months after an economic downturn. Conversely, filing rates can remain elevated even as the economy recovers, because debtors who delayed filing during the downturn may file once they feel stable enough to navigate the process.
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Read our methodology — how this data is sourced, computed, and verified.