The DMV is filing for bankruptcy faster than the rest of the country. Here’s where, and what the chapter mix says about why..
Bankruptcy filings across the Washington DC metro region rose +19.5% in the first quarter of 2026 compared with the same quarter a year earlier. That was roughly 1.4 times the national pace of +13.6%. Of the 7,053 cases filed across the District of Columbia, Maryland, and the Eastern District of Virginia, DC moved the fastest: filings rose +43.8%, and 90% of that increase was Chapter 7. Chapter 13 filings in DC stayed at 27 in both quarters. Rising Chapter 7 filings with flat Chapter 13 filings point to lost income, not households trying to stretch income through a repayment plan.
DMV Region Overview
Combined filings across DC, Maryland, and the Eastern District of Virginia totaled 7,053 for the quarter, up +19.5% from 5,903 a year earlier. National filings rose +13.6% over the same period. Both Maryland and the Eastern District of Virginia posted double-digit YoY increases. DC added 49 filings on a base of 112, the largest proportional move of any DMV jurisdiction.
The chapter mix splits the region into two patterns. Chapter 7 liquidates assets within months and is typically used by people whose income has fallen. It accounted for 62.1% of DMV filings, with DC at 73.9% versus a national share of 62.7%. Chapter 13, the three-to-five-year repayment plan that requires demonstrable ongoing income, made up 36.8% of DMV cases. Maryland (63.0% Ch. 7 / 35.9% Ch. 13) and Eastern Virginia (60.6% / 38.6%) sit close to the national distribution. DC does not.
| Jurisdiction | Q1 2026 | Q1 2025 | YoY Change | Ch. 7 Share | Ch. 13 Share | Rate / 100k * |
|---|---|---|---|---|---|---|
| Washington DC | 161 | 112 | +43.8% | 73.9% | 16.8% | 98.2 |
| Maryland | 3,515 | 2,826 | +24.4% | 63.0% | 35.9% | 211.9 |
| Virginia (EDVA)† | 3,377 | 2,965 | +13.9% | 60.6% | 38.6% | — |
| DMV Total | 7,053 | 5,903 | +19.5% | 62.1% | 36.8% | N/A |
| Virginia (WDVA, ref.) | 942 | 858 | +9.8% | — | — | — |
| National (reference) | 152,262 | 134,063 | +13.6% | 62.7% | 35.4% | N/A |
* Per-capita rate is calculated on the trailing 12-month total ending March 31, 2026, divided by 2024 Census population estimates. Quarterly filings are too volatile for a stable rate. † The DMV total uses the Eastern District of Virginia only. Statewide Virginia (EDVA + WDVA) totaled 4,319 in Q1 2026, a +13.0% YoY change, with a 12-month per-capita rate of 188.8 per 100,000.
Washington, DC
U.S. Bankruptcy Court, District of Columbia
The District of Columbia recorded 161 bankruptcy filings in Q1 2026, up from 112 a year earlier. That +43.8% increase was the largest year-over-year jump of any DMV jurisdiction. The 12-month total grew +45.3%, so the rise is not limited to one quarter. Filing volumes in DC are still small in absolute terms. The District added 49 cases over Q1 2025, and the new cases were concentrated in Chapter 7.
Of the 49-case increase, 44 were Chapter 7, roughly 90% of the jump. Chapter 13 was unchanged at 27 filings. Chapter 13 requires ongoing income to fund a repayment plan. Chapter 7 is more common when income has fallen too far to support repayment. DC’s increase came almost entirely from the latter group.
This is the first quarter after the federal workforce reductions of 2025, including hiring freezes, deferred-resignation programs, and reductions in force concentrated at agencies headquartered in DC and Northern Virginia. The filing data does not prove that those reductions caused the increase. It does show that the increase in DC is overwhelmingly liquidation-driven. Chapter 11 also made up 9.3% of DC’s caseload, compared with the national share of 1.8%, partly because many incorporated entities are based in the District.
DC Chapter Detail
| Chapter | Q1 2026 | Q1 2025 | Change |
|---|---|---|---|
| Chapter 7 (Consumer) | 112 | 69 | +43 |
| Chapter 7 (Business) | 7 | 6 | +1 |
| Chapter 11 | 15 | 10 | +5 |
| Chapter 13 | 27 | 27 | 0 |
| Total | 161 | 112 | +43.8% |
Maryland
U.S. Bankruptcy Court, District of Maryland
Maryland recorded 3,515 filings in Q1 2026, up +24.4% from 2,826 a year earlier. The District of Maryland covers the entire state: Baltimore, the Eastern Shore, and the DC suburbs. Maryland’s 12-month filing rate of 211.9 per 100,000 residents is the highest in the DMV and about 120% of the national rate (176.7 per 100,000). It is the only DMV jurisdiction clearly above the country as a whole.
Within the state, Baltimore is leading the increase. Baltimore City filings rose +27.5% over the trailing 12 months, the largest jump among major Maryland jurisdictions. The DC suburbs rose more slowly: Prince George’s County is up +15.7% and Montgomery County is up +10.7%. Baltimore City and Baltimore County are leading the rise, not the DC suburbs.
Maryland Counties (12-Month Trailing)
| County | Region | 12-mo ending Mar 2026 | 12-mo ending Mar 2025 | YoY |
|---|---|---|---|---|
| Baltimore (County) | Baltimore metro | 3,012 | 2,544 | +18.4% |
| Prince George’s | DC suburbs | 2,351 | 2,032 | +15.7% |
| Baltimore (City) | Baltimore metro | 2,186 | 1,714 | +27.5% |
| Anne Arundel | Baltimore metro | 1,065 | 929 | +14.6% |
| Montgomery | DC suburbs | 1,026 | 927 | +10.7% |
| Harford | Baltimore metro | 608 | 514 | +18.3% |
| Charles | DC suburbs | 497 | 405 | +22.7% |
| Howard | DC suburbs | 427 | 382 | +11.8% |
| Frederick | DC suburbs | 328 | 300 | +9.3% |
| Wicomico | Other | 237 | 224 | +5.8% |
| Carroll | Baltimore metro | 203 | 201 | +1.0% |
| Calvert | DC suburbs | 173 | 153 | +13.1% |
County totals are 12-month rolling because U.S. Courts publishes county-level data only at annual cadence (Table F-5A). The District of Maryland covers the entire state.
Maryland Chapter Detail
| Chapter | Q1 2026 | Q1 2025 | Change |
|---|---|---|---|
| Chapter 7 (Consumer) | 2,156 | 1,697 | +459 |
| Chapter 7 (Business) | 59 | 57 | +2 |
| Chapter 11 | 36 | 24 | +12 |
| Chapter 13 | 1,262 | 1,048 | +214 |
| Total | 3,515 | 2,826 | +24.4% |
Virginia
Eastern District of Virginia (EDVA) and Western District of Virginia (WDVA)
Virginia statewide recorded 4,319 filings, up +13.0% from 3,823 in Q1 2025. The two federal districts moved at different speeds. The Eastern District, which covers Northern Virginia, Richmond, and Hampton Roads, rose +13.9%. The Western District (Roanoke, Charlottesville, the Shenandoah Valley) rose +9.8%. Virginia’s 12-month per-capita rate of 188.8 per 100,000 residents is just above the national rate of 176.7.
Within EDVA, the sharpest movement is in the federal-employee corridor. Among Northern Virginia jurisdictions, the steepest 12-month increase came from Alexandria City at +34.9%, nearly three times the national pace. Fairfax County followed at +21.0%, Loudoun at +15.6%, and Stafford at +12.4%. Arlington was the outlier at +9.3%, below the national rate. The data does not prove causation, but the increases are clustered in places with heavy federal workforce exposure. The gap between Alexandria and Arlington is also too large to ignore.
Northern Virginia Counties (12-Month Trailing)
| Northern Virginia jurisdiction | 12-mo ending Mar 2026 | 12-mo ending Mar 2025 | YoY |
|---|---|---|---|
| Fairfax | 967 | 799 | +21.0% |
| Prince William | 757 | 676 | +12.0% |
| Loudoun | 379 | 328 | +15.6% |
| Spotsylvania | 334 | 312 | +7.0% |
| Stafford | 263 | 234 | +12.4% |
| Alexandria (City) | 170 | 126 | +34.9% |
| Arlington | 129 | 118 | +9.3% |
| Fauquier | 82 | 77 | +6.5% |
| Fredericksburg (City) | 72 | 75 | -4.0% |
| Fairfax (City) | 51 | 48 | +6.2% |
| EDVA total (all counties) | 12,689 | 11,306 | +12.2% |
| WDVA total (all counties) | 3,717 | 3,269 | +13.7% |
Virginia Chapter Detail (Statewide)
| Chapter | Q1 2026 | Q1 2025 | Change |
|---|---|---|---|
| Chapter 7 (Consumer) | 2,557 | 2,257 | +300 |
| Chapter 7 (Business) | 87 | 64 | +23 |
| Chapter 11 | 34 | 15 | +19 |
| Chapter 13 | 1,640 | 1,486 | +154 |
| Total | 4,319 | 3,823 | +13.0% |
What Q1 2026 Numbers Mean for DMV Residents
Most personal bankruptcies fall into one of two categories. Chapter 7, sometimes called “liquidation,” wipes out most unsecured debt within a few months but requires passing a means test and may involve surrendering non-exempt assets. It is generally the option for people whose income has fallen far enough that they cannot realistically repay what they owe. Chapter 13 sets up a three-to-five-year repayment plan. It requires demonstrable ongoing income and is most often used by people who still earn enough to pay something but have fallen behind on a mortgage, car loan, or tax debt.
The quarter looks different depending on where a household lives. In DC and Northern Virginia, Chapter 7 is rising while Chapter 13 is flat. For someone in Alexandria, Fairfax, or Loudoun who has lost a federal job or federal contract, that distinction matters. Chapter 7 is faster but requires income low enough to pass the means test. Chapter 13 requires stable income that may no longer be there.
In Maryland’s Baltimore region and most of EDVA outside NoVA, the chapter mix is closer to the national pattern. Increases are spread across both Chapter 7 and Chapter 13. That points to households that are still earning income but are squeezed by housing costs, debt service, and consumer prices. Chapter 13, with its repayment plan and asset retention, is more often relevant in that situation.
The DMV’s per-capita filing rates remain mixed against the national rate of 176.7 per 100,000 residents. Maryland is higher at 211.9, Virginia is slightly higher at 188.8, and DC is well below at 98.2. None of these are at recession-era highs. The Q1 2026 numbers, especially DC’s chapter mix and Alexandria’s +34.9% trailing jump, should be watched through the rest of the year as the federal-employment shocks of 2025 work through household balance sheets.
If You’re Considering Filing in the DMV
The right chapter depends on where your household sits today, not on the headline filing volume in your county. If you have lost a federal job or contract and your income has dropped sharply, Chapter 7 may fit, but the means test gets stricter once severance and unemployment income enter the calculation, so timing matters. If you are behind on a mortgage or car loan and still earning, Chapter 13 lets you keep the asset while you catch up over three to five years. Anyone weighing this decision should consult a bankruptcy attorney before filing to run the means test, compare exemptions, and time the petition correctly.
Methodology
This report draws on two sources published by the Administrative Office of the U.S. Courts: Table F-2 (Three-Month), which reports new bankruptcy cases commenced during the quarter ending March 31, 2026, broken down by judicial district and chapter, and Table F-5A, which reports the same data at county level for the 12-month period ending March 31, 2026.
The DMV region is defined here as the District of Columbia plus the District of Maryland plus the Eastern District of Virginia (EDVA). The Western District of Virginia (WDVA) is reported separately and excluded from the DMV aggregate, since it covers Roanoke, Charlottesville, and the Shenandoah Valley outside the DC metro area. Maryland’s federal district covers the entire state, including Baltimore and the Eastern Shore. County-level breakdowns from F-5A are used to identify the DC suburban share.
Year-over-year comparisons use the same quarter in the prior year (Q1 2026 versus Q1 2025) drawn from F-2 (Three-Month) for both periods. County-level year-over-year is calculated on the 12-month trailing period because U.S. Courts publishes county data only at annual cadence. Per-capita rates use 2024 Census Bureau Population Estimates Program figures: DC 678,972, Maryland 6,180,253, and Virginia 8,715,698. “Filings” refers to cases commenced, not those discharged or dismissed. Business versus consumer designations follow U.S. Courts’ own classification.
