Bankruptcy filings are on the rise in America by as much as 11.4% nationwide.
However, in Franklin County, bankruptcy filings are hovering close to where they were last year, according to the latest data from the Administrative Office of the U.S. Courts.
The office found that over the 12-month period from September 2025 to September 2026, total bankruptcy filings across the country totaled 621,111 cases, compared to 557,376 cases the year before. In Franklin County, however, filings have been slightly lower compared to the year before. From September 2025 to September 2026, the office reported 53 bankruptcy cases in Franklin County. The year prior, there were 56 cases.
Shelburne Falls attorney Kevin Parsons said he hasn’t seen a tsunami of bankruptcy filings, but more and more people have been inquiring about how the process works, even if they ultimately decide not to file.
“Bankruptcy, up until recently, has been really rare around here,” Parsons said. “People are struggling.”
Parsons said he’s done a few filings this year, and fielded plenty of phone calls from people wanting to learn about how bankruptcy works and if it’s an option for them.
According to the Administrative Office of the U.S. Courts, nationwide bankruptcy filings declined for more than a decade, from 2010 to 2022. In 2022, however, the trend switched, and filings have been steadily rising ever since, although they have not reached the historic highs from 2010.
The data shows that in Massachusetts, filings reached a peak of 23,485 in 2010, dropping to a low of 3,429 statewide in 2022. From September 2025 to September 2026, Massachusetts has seen a total of 5,542 bankruptcy filings.
Franklin County has followed the nationwide and state trend over the years, although not quite to the degree of national bankruptcy rates. Over the past 10 years, Franklin County bankruptcy filings have dropped from 115 in 2017 to a low of 37 in 2022. As was the case nationally and in Massachusetts, numbers started to trend upward from there.
Michael Deere is a bankruptcy attorney with Shatz, Schwartz and Fentin P.C., a Springfield-based law firm with offices in Northampton. He said that what his firm has seen has aligned with the data trends reported by the Administrative Office of the U.S. Courts. He noted, given that people generally wait until the last minute to file, he expects bankruptcy filings will continue to rise.
“I’m not sure we’ve crested the wave,” Deere said. “There’s not enough indicators that the market is turning around.”
Parsons said that while he hasn’t seen large swarms of people filing for bankruptcy, he does believe that more and more people are going to explore bankruptcy as an option.
“I believe it’s going to continue trending upwards because of the economic conditions,” Parsons said. “People are just under so much pressure.”
According to data from the U.S. Bureau of Labor Statistics, costs of consumer goods are up, while the number of people who are employed is decreasing, and the wages of those who are working are relatively stagnant.
The labor force participation rate for Massachusetts, which measures how many people over the age of 16 are actively working or seeking employment, was 62.6% in September 2026, a slight decrease from the rate of 63.4% the year prior.
Further data from the U.S. Bureau of Labor Statistics shows that statewide, unemployment had been increasing over the past year, but in recent months, unemployment has begun to decrease again, except in Franklin County, where it has risen slightly. In September 2025, Franklin County saw an unemployment rate of 3.7%; a year later, the rate increased to 3.8%. Franklin County was the only county in Massachusetts to see an increase over the year.
Wages in Massachusetts were up 4.8% in the first quarter of 2026 compared to 2025, according to the U.S. Bureau of Labor Statistics, with employees statewide making an average of $2,201 weekly. Franklin County residents make less than half the state average, with a weekly wage of $1,085.
Within Franklin County, Greenfield saw an unemployment rate of 4.7 in September 2026, up by 0.1% from 2025, according to the Massachusetts Department of Economic Research. Greenfield residents make an average weekly wage of $1,127, with healthcare being the largest industry in the city. Deerfield has a lower unemployment rate (2.6%), which is down from a rate of 3.5% in 2025. Deerfield residents make an average weekly wage of $1,263, with educational services and manufacturing being the top industries.
In Orange, the unemployment rate was 5.1% in September, down from 5.8% the year prior. Residents earn an average weekly wage of $999, with retail trade the largest industry.
Meanwhile, the U.S. Bureau of Labor Statistics’ Consumer Price Index for All Urban Consumers increased 0.6% in September, totaling a 3.7% increase over the previous year across all items. However, some items saw a larger increase than others. The food index rose 2.5% over the 12-month period, and energy rose 20.4%, with gasoline up 34.2%. Medical care increased by 2.5%.
Parsons noted that most of the clients he sees are in debt due to a medical situation, a job loss, divorce or a combination of factors. He added that he’s noticed the number of retirees filing for bankruptcy has increased lately.
“People are very proud and feel embarrassed, but oftentimes this is the proper route for them to start again,” Parsons said.
Deere emphasized that he rarely sees clients filing bankruptcy due to financial mismanagement. He noted that bankruptcy, while it stays on a person’s credit for 10 years, does not actually negatively impact a person’s credit score for that long. Instead, he explained that it indicates to creditors that the person has taken the steps to manage their debts and is in a better place to start over and see success.
“It’s not any one thing, and it’s not that they did anything wrong,” Deere said. “In this market right now, it takes very little for people to tip over.”
He added that businesses, too, can file for bankruptcy for a variety of reasons, and often it is increasing material costs that can push a small, family-run business over the edge, or when government funding they might rely on dries up.
Parsons said he often sees people file for bankruptcy later than they should, noting that he sees clients who will sell their houses and liquidate assets before filing, but if they contact a bankruptcy attorney sooner, they may be able to keep more of their assets.
“Unfortunately, I see a ton of people liquidating their retirement accounts and those are protected,” Parsons said. “They didn’t have to do that. … People are very proud; they want to pay their bills if they can.”
Deere said he has seen businesses grow and expand, and then, just a short period later, when the market contracts, they need to take out risky loans that push them into bankruptcy. He encourages people to reach out sooner and see if their business assets can be reorganized rather than liquidated.
“A lot of times, by the time we see them, things are out of control and they would’ve benefited from seeing us sooner,” Deere said.
Parsons explained that with a Chapter 7 bankruptcy, retirement accounts are protected. He added that people are generally able to keep the value of their home, up to $250,000. He encourages people to reach out to debt relief agencies sooner rather than later to learn more about their options and whether filing for bankruptcy is the right step for them.
“People just need to reach out and not be afraid to ask the question,” Parsons said.
“Bankruptcy is not the end; it’s a fresh start,” Deere said. “It’s not the end of the road.”
