BURLINGAME, Calif. — Even though the economy is strong overall, a new analysis shows bankruptcy filings have continued to increase over the last two years, with that same analysis forecasting the trend will continue through 2024.
According to G2 Risk Solutions (G2RS), the first quarter of 2024 saw a 16.2% increase in bankruptcy filings compared to the same period in 2023. Between 2022 and 2023, G2RS said its data shows that bankruptcy filings rose 16.5%.
Not only is G2RS seeing an uptrend year-over-year (YoY), but a steady increase across all U.S. regions month-over-month, the company said.
It bases its findings on a blend of public and proprietary lender and creditor bankruptcy records. G2RS added it tracks bankruptcy filing statistics daily.
The company is predicting that if the trend continues the country will see a 32% increase from 2022 to 2024. G2RS tracks bankruptcy filing statistics daily and is monitoring the continued trajectory.
Filings by Region
Regionally, year-to-date (YTD) bankruptcy filings were highest in the Pacific and Mountain regions, according to G2RS, which reported:
- Pacific: 29.84% YTD (Q1) increase over 2023 (Q1). “Notably, the Pacific region experienced nearly 25% month-over-month growth from March to April 2024, eclipsing all other regions for the same period,” the company said.
- Mountain: 18.40% YTD (Q1) increase over 2023 (Q1). The Mountain region experienced a more than 13% annual increase in total bankruptcy filings from 2022 to 2023. Arizona led the region by volume with 9,207 filings, while Colorado's YoY growth rate showed an 18% increase YoY, the company said.
‘More Prominent’
G2RS said in its analysis that large populations—like California in the Pacific region—make the increase in bankruptcy filings more prominent in the data.
“All regions of the country are showing increases in bankruptcy filings, which is a signal to watch closely,” Ryan Sanders, who leads relationship management for the G2RS bankruptcy intelligence line of business, said in a statement. “At this trajectory, bankruptcy filings may surpass pre-pandemic levels in just a few years, and this will impact industries across the board.”
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