Bankruptcy Law Center: San Diego Chapter 13 Filings Rise at Twice the National Rate, 2026 Data Shows

San Diego, CA, USA, September 21st, 2026, FinanceWire

U.S. Court data shows San Diego County Chapter 13 filings increased from 628 to 725 in the year ending June 2026, compared with a 7.6% increase nationally.

Bankruptcy Law Center announced the release of its 2026 Regional Insolvency analysis, providing insight into localized legal and financial trends across Southern California. This year’s report highlights an increasingly pronounced divergence in filing patterns between San Diego County and the rest of the country, particularly in the use of structured repayment plans versus traditional liquidation procedures. According to data analyzed by Bankruptcy Law Center from U.S. Courts statistics, San Diego County experienced a surge in Chapter 13 bankruptcy filings over the twelve months concluding on June 30, 2026, a rate more than double the national average during the same period.

The latest figures released by Bankruptcy Law Center indicate a significant shift in the composition of bankruptcy filings within the region. San Diego County saw an overall increase in bankruptcy cases, with 5,447 cases filed in the twelve months ending June 30, 2026, compared to 5,047 in the prior 12-month period, a rise of approximately 7.9%. While overall case volumes moved as expected, the breakdown by chapter suggests a stronger preference for reorganization through payment plans.

The Rise of Chapter 13 Filings

The most compelling revelation within the Bankruptcy Law Center report is the disproportionate growth in Chapter 13 filings, where debtors restructure their debts into monthly payments over three to five years. San Diego County saw its Chapter 13 filings climb in the most recent year..

Chapter 7 cases continue to make up the majority of local filings, their growth has considerably lagged behind the national trend. San Diego County registered an increase of just 6.4% in Chapter 7 cases, from 4,393 to 4,675. This compares sharply to the 14.7% increase observed nationwide, with Chapter 7 filings nationally. Bankruptcy Law Center concludes that this significant divergence is the most significant aspect of the 2026 regional data, signifying a unique and pronounced increase in Chapter 13 filings in San Diego County.

An in-depth examination of the data also provides insight on the factors driving this increase. Nonbusiness Chapter 13 filings, which constitute the vast majority of this category, rose in San Diego County. The report further highlights that nearly all Chapter 13 cases filed were specifically designated as nonbusiness, underlying the overwhelmingly consumer-driven nature of the local increase rather than a trend of large-scale corporate restructurings.

Business and Nonbusiness Filings Trajectories

The Bankruptcy Law Center’s analysis also provides an overview of commercial filings trends. San Diego County experienced a significant jump in business bankruptcy cases. Nonbusiness filings, reflecting those made by individuals and sole proprietors, saw a more moderate increase. Although the percentage increase in business filings seems impressive, the larger volume of consumer filings continues to shape the local bankruptcy court’s workload.

The analysis is based solely on filing volume data published by U.S Courts, and that the statistics do not identify the specific economic conditions or personal circumstances prompting individual filings. Bankruptcy Law Center’s report limits its scope to observable filings patterns and growth rates, and thus, does not attempt to establish causal relationships with external factors such as personal debt levels, housing market dynamics, or unemployment rates. The analysis uses data from the Administrative Office of the U.S. Courts’ Report F-5A for the twelve-month periods ending June 30, 2025 and June 30, 2026, comparing local and national figures across different chapters.

Frequently Asked Questions

Is there an increase in bankruptcy filings in San Diego County?

Bankruptcy Law Center’s analysis reveals that total bankruptcy filings in San Diego County increased by about 7.9% in the 12 months ending June 30, 2026, reaching 5,447 cases compared to 5,047 in the previous year.

Why are Chapter 13 cases rising faster than Chapter 7 cases in San Diego?

Bankruptcy Law Center analyzed data from the U.S Courts Report F-5A but found no specific circumstances detailing the increase in Chapter 13 filings. The statistics are clear in that in San Diego, Chapter 13 cases increased by 15.4%, while Chapter 7 cases grew only 6.4%. Nationally, the trends were opposite, with Chapter 13 filings growing at a rate of 7.6% and Chapter 7 filings at 14.7%.

Can foreclosure be stopped with a Chapter 13 bankruptcy filing?

Bankruptcy Law Center's analysis of Report F-5A from the U.S Courts shows that Chapter 13 filings can stop a foreclosure action after a case is initiated. Through this process, delinquent mortgage payments may be cured over a period of three to five years, provided ongoing mortgage payments are kept up to date.

Methodology

Bankruptcy Law Center analyzed Administrative Office of the U.S. Courts Report F-5A data covering cases filed during the 12-month periods ending June 30, 2025 and June 30, 2026. San Diego County totals were compared by chapter and by business/nonbusiness classification, with percentage changes and shares calculated from published case totals. National chapter comparisons use U.S. Courts statistics for the same 12-month periods. No proprietary client survey or case dataset was used, and the filing data does not establish why individual debtors filed.

About Bankruptcy Law Center

Bankruptcy Law Center is a leading San Diego bankruptcy law firm dedicated to assisting individuals and families facing financial distress. We provide personalized legal guidance on Chapter 7 and Chapter 13 bankruptcy options.

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