It is quite possible that bankruptcy filings will increase in the next few months or years. When the economy struggles, there is often an increase in consumer bankruptcies. Things get more expensive, and people cannot afford the debt that they have. Workers may experience income reductions or job loss, and their budgets no longer work based on their current income.
Why would that increase in the future? It may not, but one possible warning sign is when consumers start to default on their car loans more often. Many people will do everything they can to continue paying their car loans so that their vehicles do not get repossessed. A car is a necessity for travel to school, to work and for daily life. As such, it is often one of the last payments they will miss.
Increasing default rates
What some recent studies have found is that the rates of defaults are increasing. In October 2025, researchers looked at the total number of subprime borrowers who were at least two months behind on their car loans. They found that this applied to 6.65% of these borrowers.
That may sound like a relatively small percentage, but it is important because it is the highest rate recorded in data going back to the 1990s. Car loan defaults are soaring and reaching historic heights. This means that the economic pressures on many consumers are higher than they have ever been, and many of them may turn to bankruptcy to eliminate unaffordable debt.
If you have been facing overwhelming debt and are considering your options, it is important to know what legal steps to take if you want to file for Chapter 7 or Chapter 13 bankruptcy.