Bankruptcies Surge in 2022 as Rate Hikes Increase Debt Costs, Risking Recession

Bankruptcies have surged in 2022, with 516 filings so far this year potentially outpacing 2020's total of 639.

Rising corporate bankruptcies are attributed to Fed rate hikes increasing companies' borrowing costs.

Consumer discretionary, healthcare, and industrials sectors have seen the most 2023 bankruptcy filings.

SmileDirectClub's $1B+ bankruptcy filing led Q3's largest bankruptcies.

Experts warn a wave of bankruptcies and debt defaults could risk pushing the economy into recession.