Americans filed more than 39,000 bankruptcy cases in August, an 18% increase from the same point last year.

The month of August witnessed a consistent rise in consumer bankruptcies, highlighting the increasing financial distress faced by many individuals.

Recent data from Epiq Bankruptcy, a firm specializing in bankruptcy data analytics, reveals that Americans filed over 39,000 bankruptcy cases last month, marking an 18% increase compared to the same period the previous year.

In addition to these personal bankruptcies, there were more than 41,600 new bankruptcy cases recorded last month, including businesses resorting to bankruptcy as a means to address their financial burdens. This figure also reflects an approximately 18% surge compared to the previous August, as indicated by Epiq's data.

Remarkably, this marks the 13th consecutive month in which bankruptcy cases have demonstrated a year-over-year increase.

During the pandemic, bankruptcy cases experienced a notable decline. Experts point out that it typically takes several years of grappling with debt and a significant life event, such as potential eviction or medical crises, for many consumers to decide to file for bankruptcy.

"The sustained year-over-year uptick suggests that the anticipated growth in bankruptcy filings is materializing," noted Gregg Morin, Vice President of Business Development and Revenue at Epiq Bankruptcy.