Bankruptcy is a legal last resort for debt relief — and more Americans are using it than they were just a few years ago. A common bankruptcy concern is that it can hurt your credit history — and it does show up on your record. The bankruptcy rate is still below pre-pandemic levels, but risingDespite the steady rise in the personal bankruptcy rate since 2023, filings are still below the pre-pandemic norm. By 2022, the personal bankruptcy rate had fallen about 51% compared to 2019, according to the Administrative Office of the U.S. Courts. "I never interpret fluctuations in the bankruptcy rate as a terrible thing, as my first interpretation," Hansen said.