In the U.S., total bankruptcy filings rose by 14.2 % for the year ending December 31, 2024, compared to the prior year. The increase is driven largely by nonbusiness (i.e. personal/consumer) filings.
For the 12-month period ending June 30, 2024, nonbusiness filings increased ~15.3 % year-over-year.
The Central District of California (covering a large swath including Los Angeles, Orange, Riverside, etc.) reported that its “Grand Total” opened filings rose by 12.7 % year-over-year in its latest published data.
In 2024, California led the nation in number of bankruptcy filings with ~47,621 total filings (all types), though this is a raw count, not per-capita. These data suggest that, yes, bankruptcy activity in California is trending upward.
increases However have not eclipsed past peaks (e.g. pre-pandemic levels) in many jurisdictions.
Some federal bankruptcy districts in California may see stronger increases than others; local economies, cost of living, and debt burdens differ. Economic stressors (e.g. inflation, interest rates, housing costs) may take time to translate into filings, so some of the increase may be catching up with earlier pressures.
Changes in bankruptcy law, court backlogs, or local filing practices sometimes affect timing or visibility of filings independently of underlying personal financial distress.
Local / District-level changes in N.D. California
New Chapter 13 Plan (effective Jan 1, 2023)
The Northern District adopted a revised Chapter 13 plan (via Amended General Order 34). Among other changes, it imposes stricter requirements for reporting post-petition direct payments to secured (Class 1) creditors. Central District Bankruptcy Court
This means debtors and attorneys in N.D. Cal. must ensure compliance with the new reporting obligations under the local plan.
Revised Bankruptcy Local Rules (Effective December 1, 2023)
The district has updated its local rules, including a revision to Bankruptcy Local Rule 5005-2 (relating to electronic filings and document standards).
These local rule changes can affect how documents must be filed (format, redactions, etc.) within N.D. Cal.
General Orders affecting court practice
- General Order 45: Discontinuation of the Mortgage Modification Mediation Program, and abrogation of General Order 29.
- Other General Orders: The court has a series of general orders that adjust administrative procedures, particularly in light of the COVID-19 emergency, and transition away from interim rules.
These orders change procedural aspects (e.g. assignment of cases, use of certain programs) that may indirectly affect filings.
Dollar amount adjustments (April 1, 2025)
The federal Bankruptcy Code dollar-amount thresholds (e.g. for various claims, exemptions, and statutory caps) were adjusted on April 1, 2025. Official forms were revised accordingly.
These changes will affect all bankruptcy filings (including in N.D. Cal) filed on or after that date.