Jan. 26, 2026
Corporate distress grows as companies adjust to higher rates
Corporate bankruptcies hit a 15-year high in 2025 -- and attorneys say the pressure from high interest rates, rising costs and tariff uncertainty isn't letting up anytime soon.
Corporate bankruptcies have hit their highest level in 15 years, and while attorneys do not see the large-scale filings that occurred during the Great Recession, they are expecting another increase in 2026.
Andrew M. Troop, Pillsbury Winthrop Shaw Pittman LLP's Insolvency and Restructuring Practice Group leader, said in a phone interview that financial conditions for many companies have tightened because the costs of capital and interest rates have gone up in recent years.
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