Delaware, Texas have highest business bankruptcy filings in U.S.

August 1, 2026 - 21:45

New data shows a sharp rise in business bankruptcy filings across the United States, with Delaware and Texas recording the highest numbers in the country. The overall increase nationwide has reached nearly 12 percent over the past year, following a similar jump of about 15 percent the year before. That marks two consecutive years of significant growth, signaling ongoing financial strain for many companies.

Delaware, long known as a popular state for corporate registration, and Texas, with its large concentration of energy and real estate firms, are seeing the most activity. Experts point to higher interest rates, tighter lending conditions, and lingering supply chain disruptions as key drivers. Smaller businesses, especially those in retail and construction, appear to be hit hardest, as they struggle to manage debt and rising operating costs.

While bankruptcy filings are often seen as a last resort, they can also reflect a strategic move for restructuring. Some larger companies use Chapter 11 to shed burdensome contracts and emerge leaner. Still, the steady climb in filings worries economists, who say the trend may continue if borrowing costs stay elevated. For now, the numbers suggest that many businesses are still feeling the pressure of a slow economic recovery.