Bankruptcy Filings are Rising - Time to Educate
Bankruptcy figures signal a clear upward trend, but overall filings still remain relatively low compared to historical levels seen a decade ago.
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Published on Aug 05, 2025

A recent report from the United States Bankruptcy Court revealed that individual bankruptcy filings rose by just over 13% from March 2024 to March 2025, while business bankruptcies increased nearly 15% during the same period.

While these figures signal a clear upward trend, overall filings still remain relatively low compared to historical levels seen a decade ago.

However, the landscape may be shifting. A report from CBS News notes that more Americans are considering bankruptcy as consumer debt reaches critical highs. With inflation remaining steady and wages struggling to keep pace, many are finding it increasingly difficult to cover basic living expenses.

What does this mean for your practice?

Now is the time to step up your outreach and education efforts. By demystifying the bankruptcy process and making it more approachable, you can connect with potential clients who need help but aren’t sure where to turn. Here are a few ways to do that:

1. Simplify Your Marketing

Create and share easy-to-understand educational content across your website, email campaigns, and social media. Use plain language, FAQs, and short videos to help potential clients understand the basics of bankruptcy and how it can provide relief.

2. Be Transparent About Costs

Many consumers assume bankruptcy is too expensive. Combat this misconception by being upfront about attorney fees and offering flexible payment options. Clear communication builds trust from the start.

3. Offer Flexible Communication

Let clients know you’re available on their terms whether that be in-person or virtually, by phone, or even by text. In fact, studies show that texting can be up to 10x faster than traditional communication, and many clients prefer it for convenience. Tools like NextMessage client texting were built to streamline this process.

4. Break the Stigma

There’s still a stigma around filing for bankruptcy, but you can help change that. Educate your audience on the real benefits of filing: peace of mind, financial reset, and a path forward. Remind them that bankruptcy is a legal tool designed to help, not a personal failure.

By making bankruptcy more accessible and less intimidating, you can build stronger client relationships and ultimately grow your practice—while helping people get the fresh start they deserve.