Bankruptcy filings are rising across the U.S. and in Alabama, reaching their highest levels since 2019 as economic pressures continue to impact both consumers and businesses.

In the article, “Alabama bankruptcy filings hit highest level since 2019,” published in the Birmingham Business Journal, “Birmingham partner Scott Williams shares a number of reasons for the increase in filings.

“An important reason is the impact of tariffs and high fuel costs on consumer sentiment,” he said. “In times of uncertainty, people are cautious about how they spend their paychecks, and the American economy is largely driven by consumer spending. As a result, a slowdown in spending leads to economic contraction. Also, higher interest rates have a negative impact on both individual and corporate spending.”

The BBJ also reported, that in Alabama bankruptcy filings totaled 20,636 in 2025, according to the most recently available American Bankruptcy Institute data which is more than any year since 2019, when filings totaled 26,809 in the state.

“When I am advising clients, my most important advice is to be cautious and look for opportunities to both cut expenses and grow your business,” Williams said. “Companies who ignore warning signs and simply keep doing ‘the same old thing’ will often find themselves headed down a dead-end road. Being aware of the economic environment and making prudent decisions only happens when you are paying attention to your business and the marketplace.”

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