U.S. Corporate Bankruptcies Surge to 2008 Crisis Levels as Consumer Debt Hits Record $18.8 Trillion

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18 large U.S. companies with $50M+ liabilities filed bankruptcy in just three weeks this month.
Credit card delinquencies jumped to 12.7% in Q4 2025, the highest level recorded since 2011.
U.S. household debt reached record $18.8 trillion with all categories at historic peak levels.
Younger consumers ages 18-39 face delinquency rates near 9.5%, straining discretionary spending.

U.S. corporate bankruptcies have surged to levels not seen since the 2008 financial crisis. Recent data shows 18 large companies with liabilities exceeding $50 million filed for bankruptcy in just three weeks.

The pace of corporate failures has reached the fastest rate since the 2020 pandemic. Meanwhile, consumer credit stress has intensified sharply.

Serious credit card delinquencies climbed to 12.7% in Q4 2025, marking the highest level since 2011. These parallel trends point to mounting economic pressure across both business and household sectors.

Record Pace of Large Company Failures

Nine large U.S. companies declared bankruptcy last week alone, according to market analyst Bull Thery. This pushed the three-week average to six bankruptcies, matching crisis-era conditions.

The worst period this century occurred during the 2009 financial crisis, when the three-week average peaked at nine. Current bankruptcy rates are approaching those historic highs, raising concerns about corporate health.

The speed of these failures stands out compared to recent years. Between 2020 and 2024, large corporate bankruptcies remained relatively contained despite economic volatility.

The sudden acceleration suggests underlying stress has been building across multiple sectors. Companies are facing pressure from high borrowing costs and weakening consumer demand.

Corporate debt burdens accumulated during years of low interest rates now pose greater challenges. Many firms were locked in favorable terms before monetary tightening began.

BREAKING: U.S. corporate failures and consumer stress just hit crisis levels, the worst since 2008.

In just the last 3 weeks, 18 large companies each with $50M+ in liabilities have filed for bankruptcy. Last week alone, 9 large U.S. companies went bankrupt.

That pushed the… pic.twitter.com/q3vnSuVnxd

— Bull Theory (@BullTheoryio) February 12, 2026

However, those with variable-rate obligations or refinancing needs face sharply higher costs. The combination creates difficulty for companies already operating on thin margins.

This wave of bankruptcies could spread through supply chains and labor markets. When large companies fail, smaller suppliers often face payment delays or losses.

Job cuts typically follow, which then reduces consumer spending power. The cycle can accelerate if not interrupted by policy intervention.

Consumer Debt Reaches All-Time Highs Amid Rising Delinquencies

U.S. household debt hit a record $18.8 trillion, increasing by $191 billion in Q4 2025 alone. Since January 2020, total household debt has grown by $4.6 trillion.

Every major category now sits at historic peaks: mortgage debt reached $13.2 trillion, credit card balances hit $1.3 trillion, and both auto loans and student loans stand at $1.7 trillion each.

Credit card delinquency rates tell a troubling story about payment capacity. Serious delinquencies jumped 5.1 percentage points since Q3 2022.

This increase exceeds the rise seen during the 2008-2009 period. More consumers are falling behind on payments rather than catching up or stabilizing.

Late-stage delinquencies show particular weakness among younger demographics. Ages 18-29 are experiencing serious delinquency transitions around 9.5%, while ages 30-39 face rates near 8.6%.

These groups typically drive discretionary spending across retail, dining, and entertainment sectors. Their financial stress directly affects economic growth.

Credit card balances entering 90-plus days delinquent climbed to 7.1%, now the third highest level since 2011. This metric indicates consumers have exhausted options to catch up on payments.

The Federal Reserve may need to respond with rate cuts and liquidity support if conditions worsen. Policy tools typically deploy after economic damage becomes visible in the data.

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