S.D. counters trend in business bankruptcies
May 15, 2026
Business bankruptcy filings in the U.S. have surpassed pre-pandemic levels and are rising in many states — but not in South Dakota.
After bottoming out at 13,481 filings in 2022, annual business bankruptcies climbed to 24,737 by 2025, according to a recent report by The Kaplan Group, a commercial collection agency.
It analyzed federal judiciary data from 2019 through 2025 to map where commercial bankruptcies are rising fastest.
While every state recorded an increase in business bankruptcy filings from 2022 to 2025, South Dakota was among few states that remained well below its pre-pandemic business bankruptcy level.
The state reported 27 business bankruptcy filings in 2025, up from 20 in 2022 but well below the 60 reported in 2019.
Texas saw the largest increase, with bankruptcies rising from 2,429 in 2019 to 4,087 in 2025.
Minnesota had 307 filings last year, up from 171 in 2022 and on par with its pre-pandemic 304 filings in 2019.
Nationally, Chapter 11 filings grew from 6,052 in 2019 to 11,730 in 2025, meaning more companies are trying to reorganize debt rather than shut down, according to the Kaplan report.
