State Bankruptcy Rates by Chapter
Alabama has the highest bankruptcy rate across Chapters 7 and 13, with around 297 residents per 100,000 population petitioning bankruptcy courts for protection.
Next are Missouri and Nevada, with about 252 and 223 residents per 100,000 population, respectively.
Alaska boasts the lowest bankruptcy rates across Chapters 7 and 13; only about 30 residents filed for bankruptcy per 100,000 people.
Chapter 7 Bankruptcy Filing by State 2021
California recorded the highest number of Chapter 7 bankruptcy filings in 2020 and 2021, 42,663 and 34,855, respectively.
Alaska is on the opposite end of the scale, with 272 Chapter 7 filings in 2020 and 188 in 2021.
However, this ranking changes when we consider the number of filings per 100,000 people. Using this approach, Nevada has the highest bankruptcy rate, with approximately 197 petitions under Chapter 7 bankruptcy per 100,000 people. It is closely followed by Indiana (approximately 149 filings per 100,000 people), Ohio (approximately 142 filings per 100,000 people), and Michigan (around 133 filings per 100,000 people).
Wyoming reports the lowest bankruptcy rates, with approximately ten petitions under Chapter 7 bankruptcy per 100,000 people. Others at this level are Alaska (around 26 filings per 100,000 people), North Carolina (around 29 filings per 100,000 people), and South Carolina (around 31 filings per 100,000 people)[5].
Chapter 13 Bankruptcy Filing by State 2021
A similar scenario plays out when considering petitions under Chapter 13 bankruptcy. Focusing primarily on the number of Chapter 13 bankruptcy filings puts Georgia ahead with 10,985 petitions in 2021. Washington, DC shows the lowest numbers, with 31 Chapter 13 petitions filed in court for the calendar year 2021.
As with the previous analysis, the ranking dramatically flips when we shift the focus to the rate of Chapter 13 bankruptcy filings per 100,000 people. Alabama once again has the highest rate, with approximately 180 petitions per 100,000 people. Tennessee follows closely with around 110 filings per 100,000 people, Georgia (around 102 filings per 100,000 people), Mississippi (around 90 filings per 100,000 people), and Arkansas (around 86 filings per 100,000 people).
Wyoming boasts the lowest number of petitions under Chapter 13 per 100,000, with less than one. Other states in this category include Alaska, with approximately four filings per 100,000 people, Washington DC (around 5 filings per 100,000 people), North Dakota (around 6 filings per 100,000 people), and Maine (around 7 filings per 100,000 people)[5].
