How Did The Bankruptcy Rate In Las Vegas Change In 2025?
Las Vegas is famous for many things, but these days it consistently makes headlines for poor economic conditions. Changes in 2025 caused a downturn in tourism, the lifeblood of Las Vegas. Defaults and foreclosures were on the rise, and new jobs slowed statewide and nationwide. When these kinds of trends are present, it usually also means that the bankruptcy rate will increase. It’s logical to assume that with all the factors causing financial problems in our state, bankruptcy filings would go up- but by how much? And are these changes consistent among chapter 7, chapter 11, and chapter 13 bankruptcy? Read on for the answers to these questions and the reasons behind them. If you think you could benefit from clearing debts with bankruptcy, now is the time to learn more about the process. Las Vegas Bankruptcy Lawyers offers experienced legal representation with affordable rates and competitive payment plan options. Take the first step toward a clean slate today by calling 702-370-0155.
Nevada’s Bankruptcy Rate In 2025
Nevada is feeling the effects of many of the factors that are leading to a rise in bankruptcy filings nationwide. This has translated to a slightly higher increase in bankruptcy filings in 2025 than the national average. In the district of Las Vegas, there were 7,960 bankruptcy cases in 2025- 6,742 chapter 7 filings, 80 chapter 11 filings, and 1,138 chapter 13 filings. Compared to 6,857 bankruptcy cases in 2024, this was a 16% increase. As the numbers show, chapter 7 bankruptcy is the most common form of consumer bankruptcy. The busiest months for these types of filings were March, October, and December. Chapter 11, primarily used by businesses looking to restructure, was filed the most in January. July stood out as the most popular month for chapter 13 bankruptcy filings.
Because Las Vegas represents a large portion of Nevada’s population, the state bankruptcy rate wasn’t much different than the district of Las Vegas bankruptcy rate. There were 9,207 total bankruptcy cases filed across the state in 2025. This marked a 13% increase from the 8,154 cases filed in 2024. There were 7,654 chapter 7 cases, 103 chapter 11 cases, and 1,450 chapter 13 cases total. Notably, chapter 11 filings increased by 47%. So while Nevadans are filing personal bankruptcy cases at a rate slightly higher than the rest of the country, business filings in Nevada are increasing at a much faster rate.
The National Bankruptcy Rate In 2025
Bankruptcy filings weren’t just up in Nevada in 2025. The whole country experienced an uptick in bankruptcy cases, signaling widespread economic distress. Overall, the United States bankruptcy rate increased by 11% in 2025. The highest increase was among chapter 7 bankruptcy filings, up 15% from 2024. This is the most common form of consumer bankruptcy, and it clears unsecured debts for those who meet certain income criteria. Chapter 13 filings increased by 6%. Chapter 13 bankruptcy is meant for debtors with higher income and more valuable assets than chapter 7 bankruptcy debtors. Chapter 11 bankruptcy is a form of consumer bankruptcy that can be used by consumers, but is mostly used by businesses. As a whole, chapter 11 bankruptcy filings increased by 5% in 2025. But there are options for small business chapter 11 bankruptcy debtors that save time and money by removing the requirement for a creditor committee. These types of cases increased by 11% in 2025. Some of the most notable business bankruptcy filings of 2025 include Spirit Airlines, Forever 21, iRobot (maker of Roomba), and Claire’s.
Nevada had a significant increase in bankruptcy filings in 2025, but wasn’t among the top states for bankruptcy increases. Bankruptcies increased by a massive 27.6% in 2025 in Rhode Island. Florida also saw a sizeable increase of 23.5%. Minnesota, Alabama, and Georgia rounded out the rest of the top five. Experts predict that trends from 2025 will continue into 2026, with the same groups of households struggling financially and eventually turning to bankruptcy. Increasing foreclosures, inflated unsecured debt due to the cost of living, the return of student loan payments, and rising health insurance premiums could all maintain or grow the bankruptcy rate even further in 2026.
Why Are Bankruptcy Filings On The Rise?
Some industries and professions had a good year in 2025, but it was hard to avoid the impact of changes to our country’s economy and foreign policy this year. President Trump increased tariffs on several countries that were formerly considered our trade partners. This increased the price of imported goods for American consumers who were already struggling with a cost-of-living crisis. It also caused anger in the countries exporting those goods, leading them to strike against American products and even traveling to American vacation destinations. And one of the most iconic American vacation destinations on a worldwide level is the Las Vegas Strip. Beyond tourism, Las Vegas is widely considered a gambling destination, which is an expense many cut from their budgets during times of economic downturn. This effect can be felt when both tourists and locals stay home from the casino, although it could also be explained by the increasing popularity of sports betting apps.
Increasing bankruptcy filings can also be attributed to a weak job market. It is often a sign that companies are facing budget constraints, as hiring and training new employees is a costly investment. It makes it harder for workers who lose their jobs to find new employment, which can lead to the accrual of debt and other financial issues. Typically, economists can analyze the job market using job reports that are released monthly. However, 2025 made history as the year with the longest government shutdown. This affected a variety of government services and programs, including those responsible for releasing job reports showing the unemployment rate as well as new job creation. When these delayed reports were released, they brought statistics that were less than promising. However, the year closed out on what is considered a soft note rather than an outwardly negative perspective. Unemployment fell to 4.4% in December 2025, slightly better than the anticipated 4.5% unemployment rate. Payrolls increased by 50,000, but this was a decrease from 56,000 in November 2025 after a revision. It was also a disappointing figure considering the Dow Jones had estimated that 73,000 new jobs would be created in December 2025.
Learn More About Bankruptcy From An Experienced Las Vegas Bankruptcy Attorney
Most people find it overwhelming to educate themselves about bankruptcy, gather documents, and prepare a bankruptcy petition. Hiring an attorney is optional in the bankruptcy process, but leads to better debt relief results. Your bank accounts, paycheck, and assets could be at risk if your case isn’t filed properly. Our team can help identify issues in your case and deal with them before they arise so you can experience a better outcome. We offer competitive payment plan options that make it more affordable than you may assume to hire a high-quality bankruptcy attorney. If you want to file for bankruptcy in the most efficient and effective way possible, schedule your free consultation with an experienced Las Vegas bankruptcy attorney today by calling 702-370-0155.
Las Vegas Bankruptcy Lawyers
LAS VEGAS
7251 W Lake Mead BLVD #300
Las Vegas, NV89128
Office: 702-879-2499
Email: [email protected]
HENDERSON
1489 W Warm Springs Rd. Ste 110
Henderson, NV 89014
Email: [email protected]
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