New Jersey Business Bankruptcies Rose 79.3% to 979 Filings

LendingTree reported on July 27 that business bankruptcy filings in New Jersey reached 979 in the 12 months ended March 31, 2026, up 79.3% and the second-largest percentage increase of any state.

Why it matters: Most business bankruptcies are Chapter 7 liquidations, so screen your New Jersey receivables before the next renewal.

New Jersey filings rose 79.3% against an 11.4% national increase

New Jersey now ranks sixth in the country by business bankruptcy filing rate, and only one state grew faster.

• New Jersey filings climbed from 546 to 979, an increase of 433 petitions, in LendingTree’s analysis of U.S. Courts and SBA data.
• The state’s rate reached 93.1 filings per 100,000 small businesses against a national rate of 71.1.
• National filings rose 11.4% to 25,796, and New Jersey and Louisiana were the only two states whose filings grew more than 65%.

Chapter 7 accounted for 56.8% of U.S. business filings

The chapter mix tells a credit team more about recovery than the filing count does.

• Chapter 7 liquidations made up 56.8% of business bankruptcies nationwide and Chapter 11 reorganizations 36.1%, covering nearly 93% of filings between them.
• A Chapter 7 debtor generally ceases operating, so a supplier’s recovery depends on whatever asset pool remains rather than on future orders.
• Matt Schulz, LendingTree’s chief consumer finance analyst, points to higher debt burdens, elevated borrowing costs and softer consumer demand behind the increase.

Delaware’s 538.9 rate reflects where companies incorporate

Anyone reading the state table straight down will point a credit review at the wrong exposure.

• Delaware topped the rankings at 538.9 filings per 100,000 small businesses, more than seven times the national rate, because more than two-thirds of Fortune 500 companies incorporate there according to the Delaware Division of Corporations.
• Delaware’s actual filing count fell 61.6%, from 1,563 to 600, the steepest decline in the country.
• Filings declined in 14 states, so a national average hides where the exposure actually moved.

What to do now

Use the state data to screen the ledger you already have, and settle your recovery options before a customer files.

1. Sort your top 20 receivables by the debtor’s state of operations and flag concentrations in New Jersey, Louisiana and Texas.
2. Pull DSO by account for the flagged names, compare it against the terms you actually granted, and require security or shorten the payment window where payment behavior has slipped two cycles or more.
3. Confirm the notification requirements in your trade credit policy now, since coverage on a customer’s insolvency is subject to credit limits, notification requirements and policy terms in place at the time of loss.
4. Contact Securitas Global Risk Solutions to review whether your current credit limits match where your receivables now sit.

Disclaimer:
This blog post is meant to be informative and provide helpful tips and insights into credit insurance policies. It is not meant to supersede any policy requirements. Please consult your credit insurance policy for all requirements including claim filing deadlines and required documentation.

Since 2004, Securitas Global Risk Solutions, LLC has helped clients develop trade credit and political risk transfer solutions. As an independent brokerage, Securitas is focused on developing comprehensive solutions that meet client needs, ensuring a complete understanding of policy wording and delivering excellent responsive service. If you want to understand how trade credit insurance can protect your business, contact Securitas Global Risk Solutions to speak with a specialist.