Bankruptcies are on the rise. What it means, in 3 charts.

Group 1 - The number of corporate bankruptcies in 2025 is on track to reach 792, the highest level since 2010, with 655 bankruptcies reported in the first 10 months of the year [2][7] - The industrials sector is experiencing the most bankruptcies, followed by the consumer discretionary sector, with notable filings including Nikola, Spirit Airlines, and Claire's [3][7] - Despite the rise in bankruptcies, the levels are still significantly lower than during the Great Recession, where bankruptcies peaked at 5,335 in 2008 [4][5] Group 2 - Bankruptcies were at a low of 372 in 2022 before increasing in 2023 due to rising borrowing costs from the Federal Reserve's interest rate hikes [5] - There are two main types of bankruptcy filings: Chapter 7 liquidation, which indicates a company will cease operations, and Chapter 11 reorganization [6]