The liquidity crisis is going to trigger bank runs and bankruptcies; Chapter 7 individual bankruptcy filings jump 15% in the first nine months of 2025

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A total of 249,152 individual Chapter 7 bankruptcy filings were made in the first nine months of this year in the United States, which is a 15 percent jump compared to the same period last year, the American Bankruptcy Institute (ABI) said in an Oct. 3 statement.
Chapter 7 bankruptcy, also known as liquidation bankruptcy, involves a court-appointed trustee selling off an individual’s nonexempt assets to pay off creditors. It can discharge certain debts, with the individual no longer obliged to pay them.

This is different from a Chapter 13 bankruptcy, where an individual retains all assets, but has to agree on a repayment plan with creditors that can last for three to five years.

There were 149,337 individual Chapter 13 bankruptcy filings made during the first nine months of 2025, up 4 percent from the same period in 2024, ABI said.

Total individual bankruptcy filings rose 11 percent during this period, it added.

The sharp rise highlights mounting financial pressure on households, Michael Hunter, vice president of bankruptcy data provider Epiq AACER, said in the ABI statement.

“The growth in active Chapter 13 case inventory suggests more consumers are turning to bankruptcy as a necessary financial reset. We expect this upward trend to continue, with a strong likelihood of accelerating into 2026.”

https://www.ntd.com/chapter-7-individual-bankruptcy-filings-jump-15-percent-in-first-9-months-of-2025-post_1094543.html

Private equity is sitting on a liquidity time bomb. Cash distributions have slowed to historic lows, investors are growing restless, and fundraising momentum has stalled. Unlike past crises, this squeeze hasn’t been triggered by a recession or financial collapse — it’s the product of a market caught between high valuations, frozen exits, and a collective hesitation to sell.

Yet this moment is not just a threat; it’s a test. The firms that emerge strongest will be those that focus on fundamentals — operational value creation, disciplined liquidity management, and transparency with investors.

https://delano.lu/article/private-equitys-liquidity-time-bomb