Surging living expenses and mounting debt are driving more Americans to contemplate bankruptcy as a financial escape.

According to a report from Fox News, one in ten Americans is considering bankruptcy due to overwhelming financial pressures, marking the highest level in five years and a significant jump from last year’s one in twenty.

The survey highlights that 80% of respondents attribute their financial strain to inflation, with 74% struggling to cover basic living costs like groceries and utilities.

Over half report increased credit card debt, and one in five has taken on high-interest loans to make ends meet. Howard Dvorkin, chairman of Debt.com, notes that persistent inflation is eroding savings and pushing people toward drastic measures like bankruptcy.

Despite a robust economy with strong job growth and low unemployment, many Americans feel trapped by stagnant wages that fail to keep pace with rising costs.

Dvorkin warns that without relief—such as Federal Reserve rate cuts—bankruptcy filings could spike in 2025, especially if economic conditions worsen.

However, Dvorkin advises that bankruptcy should be a last resort. He recommends exploring alternatives like debt consolidation, settlement, or management programs, which can reduce debt without the long-term consequences of bankruptcy, such as a damaged credit score lasting up to a decade.

Filing for bankruptcy also involves significant costs, including court and attorney fees, which can exceed $1,500 for Chapter 7 or $4,000 for Chapter 13.