Story perspectives

Bankruptcy Filings Surge Amid Soaring Inflation and Debt

1/28/2026

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Summary

Story summary

Rising bankruptcy filings follow high inflation and record household debt, including credit card debt exceeding $1.21 trillion.
Chapter 7 bankruptcy can be pursued even without income, with the means test comparing income to state median levels.
Filing requires court fees and possibly attorney costs, though some courts offer fee waivers.
Consulting a bankruptcy attorney can help determine whether Chapter 7 is best or if other debt relief strategies suit.

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Story summary

Rising bankruptcy filings follow high inflation and record household debt, including credit card debt exceeding $1.21 trillion.
Chapter 7 bankruptcy can be pursued even without income, with the means test comparing income to state median levels.
Filing requires court fees and possibly attorney costs, though some courts offer fee waivers.
Consulting a bankruptcy attorney can help determine whether Chapter 7 is best or if other debt relief strategies suit.