San Diego Chapter 13 Bankruptcy Filings Rise 15.4%, More Than Twice the National Rate, Bankruptcy Center Finds

San Diego, CA, USA, September 22nd, 2026, FinanceWire

San Diego County recorded 5,447 bankruptcy filings in the year ending June 2026, and Chapter 13 cases climbed 15.4%, more than double the national growth rate, according to a new Bankruptcy Law Center review of federal court data

Bankruptcy Law Center today announced the publication of an in-depth analysis of filing data from the Administrative Office of The U.S courts, highlighting a notable divergence in how San Diego County residents are using the bankruptcy system compared to the rest of the country.

The analysis indicated that total bankruptcy filings in San Diego County increased by 7.9% in the 12 months ending June 30, 2026, according to Report F-5A of the Administrative Office of the U.S Courts. While overall filings rose, the distribution between Chapter 7 and Chapter 13 cases shifted distinctly. 

Chapter 13 filings, designed for individuals with regular income to manage their debts over a set period, saw a climb in cases locally. National Chapter 13 filings increased by only 7.6% during the same timeframe, placing San Diego County’s growth rate more than twice the national average.

Chapter 13 Growth Diverges from the National Pattern

Chapter 7 liquidation proceedings accounted for the vast majority of cases in San Diego County. Bankruptcy Law Center identified thousands of Chapter 7 filings during the latest 12-month period, that amount to the majority of cases countywide. Chapter 7’s growth was much slower than the national average, with a 6.4% increase compared to 14.7% nationally.

This disparity is the core of the findings. Nationally, Chapter 7 filings are increasing at a faster rate than Chapter 13 filings. In San Diego County, the reverse is happening. Nearly all of the increase in the county’s Chapter 13 filings came from non-business filings, jumping from 613 to 715, making up 98.6% of all local Chapter 13 bankruptcies.

What the Data Does Not Show

Bankruptcy Law Center’s analysis does not specify the reason for the increase. The Federal Reserve Bank of New York reported in the second quarter of 2026 that U.S. households carried a total debt of $18.771 trillion, including $1.263 trillion in credit card debt, 4.7% of which was at least one payment late. This figure is not specific to San Diego County and does not explain why local filings for Chapter 13 are increasingly more favored over Chapter 7, when nationally the opposite is true. Bankruptcy Law Center prepared its report using administrative filing statistics for the 12 month periods ending June 30, 2025 and June 30, 2026 based on the Administrative Office of the U.S. Court’s F-5A filing data, comparing San Diego County and national totals for the same period.

Frequently Asked Questions

Are Bankruptcy Filings Increasing in San Diego County?

Bankruptcy Law Center reported a 7.9% increase in total filings in San Diego County, from 5,047 to 5,447 cases for the year ending June 30, 2026.

How Does the Local Trend Compare to the Rest of The Country?

Bankruptcy Law Center’s analysis reveals that San Diego County’s 15.4% increase in Chapter 13 filings significantly outpaced the national 7.6% increase for that same period, whereas its 6.4% increase in Chapter 7 fillings fell well short of the national 14.7% growth rate. Chapter 13 is surging ahead locally, while Chapter 7 lags behind compared to the national picture.

What Are the Differences Between Chapter 7 and Chapter 13 Bankruptcy?

Bankruptcy Law Center notes that, according to the U.S. Courts’ Bankruptcy Basics, Chapter 7 bankruptcy is essentially a liquidation in which a trustee sells nonexempt assets to pay back creditors. In contrast, Chapter 13 bankruptcy is for individuals with steady incomes who submit a plan to repay debt, over a three- to five-year period, while retaining ownership of their assets.

Methodology

Bankruptcy Law Center analyzed Administrative Office of the U.S. Courts Report F-5A data covering bankruptcy cases filed during the 12-month periods ending June 30, 2025 and June 30, 2026. San Diego County filing totals were compared by chapter and predominant nature of debt, with percentage changes calculated from the published case totals. National comparisons use U.S. Courts bankruptcy statistics for the same periods. Household debt and delinquency figures were reviewed separately using the Federal Reserve Bank of New York's Q2 2026 Household Debt and Credit Report. No proprietary survey or client case data was used.

About Bankruptcy Law Center

Bankruptcy Law Center is a San Diego, California bankruptcy law firm founded in 1986. More information is available at bankruptcyattorneys.org

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