Business bankruptcies rise 12% nationwide, led by Delaware and Texas

According to new data from LendingTree, U.S. business bankruptcies rose by 11.4% in the twelve months through March 31, 2026, totaling 25,796 filings—up from 23,154 a year earlier. Delaware exhibited the highest filing rate at 538.9 per 100,000 small businesses, a figure driven largely by the state’s status as a corporate domicile, while Texas logged more than 4,500 filings, the greatest number of any state. Louisiana and New Jersey experienced the sharpest percentage increases, up roughly 84% and 80% respectively.

Matt Schulz, LendingTree’s chief consumer finance analyst, attributed the trend to elevated interest rates, persistent inflation and softer demand, which strain firms with thin margins or heavy debt. Chapter 7 liquidations comprised about 57% of cases and Chapter 11 reorganizations about 36%. Although filings fell in 14 states, Delaware also recorded a 62% drop in total filings, highlighting a complex regional picture.