Rising Business Bankruptcies Signal Economic Strain in the US and Oregon

Business bankruptcies are on the rise across the United States, with Oregon experiencing a particularly sharp increase. The surge in filings reflects a complex interplay of economic factors, including high interest rates, persistent inflation, and global geopolitical instability. While current levels remain below those seen during the Great Recession, the recent trend is a cause for concern among economists and business leaders.

National Trends in Business Bankruptcies

Nationally, business bankruptcies increased by 25% last year, reaching the highest point since 2013. January 2026 figures from business services firm Epiq showed a 76% jump in commercial bankruptcies compared to the same month in the previous year, though experts caution against drawing definitive conclusions from a single month’s data.

Oregon Faces a More Acute Increase

Oregon is experiencing a more pronounced increase in business bankruptcies than the national average, with filings rising almost four times faster. This is occurring against a backdrop of economic pressures specific to the state, including layoffs at major employers like Nike, Intel, and Oregon Health & Science University, which in turn impacts smaller businesses in their supply chains. Additional burdens include Oregon’s business taxes and lingering economic effects from the pandemic.

Factors Contributing to the Rise in Bankruptcies

Amy Quackenboss, Director of the American Bankruptcy Institute (ABI), attributes the increase in bankruptcies to a “convergence of economic stressors” weighing on both consumers and businesses. These stressors include:

• High Interest Rates: Increased borrowing costs produce it more tricky for businesses to manage debt and invest in growth.
• Inflation: Rising prices for goods and services erode profit margins and reduce consumer spending.
• Geopolitical Upheaval: Global instability creates uncertainty and disrupts supply chains.

The Role of the American Bankruptcy Institute

Amy Quackenboss was selected as the Executive Director of the American Bankruptcy Institute (ABI) in January 2020, having previously served as Deputy Executive Director and General Counsel since 2010. Prior to joining ABI, she practiced law at Hunton Andrews Kurth, focusing on bankruptcy litigation and restructuring. She has a long-standing commitment to pro bono work, including representing debtors in bankruptcy court and providing legal assistance to non-profit organizations.

Historical Context

While the current increase in bankruptcies is concerning, it remains below the peaks experienced during and after the Great Recession. In 2009, nearly 600 Oregon businesses filed for bankruptcy protection, compared to approximately 250 last year.

Looking Ahead

The continued rise in business bankruptcies signals ongoing economic challenges for businesses across the US, and particularly in Oregon. Monitoring these trends will be crucial for policymakers and business leaders as they navigate the current economic landscape. The convergence of factors contributing to these filings suggests that headwinds will likely persist in the near term.