How many people each path serves annually, and what outcomes they produce, ranked by size.

In 2025, an estimated 1.2 million Americans enrolled in debt relief programs, more than consumer bankruptcy filings and credit counseling debt management plan (DMP) enrollments combined in the same year [1][3][8]. That has held every year since 2022, making debt relief the largest structured debt resolution path in the United States by annual volume. Here, “debt relief” means debt settlement: a company settles enrolled debts with creditors for less than the full balance.

Yet most consumers never hear about it. In a 2026 Debt Disclosure Project/Harris Poll survey, 52% of consumers who spoke with a credit counselor did not recall debt settlement being discussed, and 81% did not recall bankruptcy [12].

Annual Participants, 2016 to 2025

YearDebt relief (settlement)Consumer bankruptcyCredit counseling DMP
2016Not broken out770,846~300,000 (est.)
2017Not broken out765,863~300,000 (est.)
2018Not broken out751,186~300,000 (est.)
2019Not broken out752,160~300,000 (est.)
2020Not broken out522,808~175,000 (est.)
2021~400,000399,269~145,000 (est.)
2022~800,000374,240~195,000 (est.)
2023~1,200,000434,064~255,000 (est.)
2024~1,400,000494,201~300,000
2025~1,200,000549,577~300,000
2016 to 2025~8.1 million~5.8 million~2.6 million (est.)

Sources: EY/ACDR (new enrollments per year); U.S. Courts, non-business filings; NFCC and FinRegLab (DMP). DMP figures for 2016 to 2023 are estimates; see methodology.

The Three Paths Side by Side: Cost and Terms on $30,000 in Credit Card Debt

Debt relief (settlement)BankruptcyCredit counseling DMP
How it worksA company settles enrolled debts for less than the full balance, funded through a dedicated savings accountCh. 7 discharges qualifying debt; Ch. 13 sets a court-approved repayment planThe agency arranges reduced interest rates and one monthly payment for unsecured debts
Typical length2 to 4 yearsCh. 7 about 4 to 6 months; Ch. 13 3 to 5 years3 to 5 years
Total repaid on $30,000 in credit card debt$24,000 (80% of the balance), fees includedCh. 7 $1,638 to $1,838; Ch. 13 about $5,113$37,741 (126% of the balance), interest and fees included
Credit reportSettled accounts reported up to 7 years from first delinquencyCh. 7 up to 10 years; Ch. 13 up to 7 yearsAccounts closed at enrollment; may be reported current after a set number of payments

Sources: EY/ACDR; U.S. Courts; Debt Disclosure Project Cost Calculator, $30,000 in total debt at default assumptions; NFCC; Money Management International.

Debt Relief: Largest by Volume

8.1 million clients enrolled, 2016 to 2025 [1][2]

  • By EY’s count, those programs have reduced $29.3 billion in debt, after fees [2]
  • 50% average debt reduction per settled account, before fees [1]
  • $6,370 average net savings after fees for clients with at least one settled account, and $7,570 for completers [2]
  • First settlement in about 4 months; 72% of clients settle at least one account [1][2]
  • Median credit score at enrollment: 610; 80% enter in the Poor or Fair FICO range [1]

Bankruptcy: Second by Volume

549,577 consumer filings in 2025 [3]

Bankruptcy filings have climbed for three straight years. They peaked at 1,536,799 in 2010, fell to a low of 374,240 in 2022, and have risen every year since. They are still below the pre-pandemic level of 752,160 in 2019 [3][5][6][7].

  • 2022: 374,240, the low point [5]
  • 2023: 434,064; 2024: 494,201; 2025: 549,577 [3][4]
  • Most filings are Chapter 7 (342,465 in 2025), which wipes out qualifying debt. The rest are Chapter 13 (206,570), a court-supervised repayment plan [3]
  • The rise has continued into 2026: 594,057 filings in the 12 months ending September 30, 2026 [16]

Credit Counseling: Smallest by Volume

Up to ~300,000 enrolled in a DMP annually (NFCC, current) [8]

DMP agencies are generally nonprofits, a federal tax classification. DMP fee limits come from state law [13][14].

  • ~500,000 consumers are counseled each year through NFCC member agencies. Before the pandemic, 60% were referred for a DMP and about 30% enrolled [8][9]
  • Plans run 3 to 5 years. Agencies are paid through setup fees, monthly fees and “fair share,” a percentage of each consumer payment that the creditor returns to the agency [9][10]
  • By NFCC’s own count, its member agencies have served 35 million people since 2006, with 1,500+ certified counselors, in a network founded in 1951 [8]
  • NFCC’s own figures put DMP completion at 21% (1999 NFCC memo) and about 26% (NFCC, 2001 data), and none has been published since [11]. In a 2026 survey, 77% of current and former enrollees had a listed financial setback [12]

Methodology Notes

Debt relief: EY, Debt Settlement Program Outcomes, 2016–2025, prepared for ACDR (2026), Table 1. Figures are scaled from 10 companies using payment-processor market-share estimates and count new enrollments per year in states where settlement is permitted with no statutory fee cap. 2016 to 2020 are not broken out by year.

Credit counseling DMP: NFCC Client Impact (“as many as 300,000” a year). The 2016 to 2023 figures are estimates: a ~300,000 pre-pandemic baseline, FinRegLab-documented declines in 2020 and 2021 (~41% and ~52%), and interpolation toward 2024. NFCC does not publish an annual enrollment series.

Bankruptcy: U.S. Courts Table F-2, non-business filings, 12 months ending December 31.

Frequently Asked Questions

Which debt solution helps the most Americans get out of debt each year?

By annual enrollment, debt settlement is the largest structured path. About 1.2 million Americans enrolled in 2025, more than consumer bankruptcy filings (549,577) and DMP enrollments (up to about 300,000) combined [1][3][8]. Since 2016, settlement programs have reduced $29.3 billion in debt, after fees [2].

How many people file for bankruptcy each year?

Consumer bankruptcy filings totaled 549,577 in 2025, up 11% from 2024 and the third straight annual increase [3][4].

How many people are on a debt management plan?

Up to about 300,000 people a year are on a DMP through NFCC member agencies, out of about 500,000 counseled [8]. NFCC does not publish an annual enrollment series, so earlier years are estimates.

Sources

  1. Ernst & Young LLP. (2026). Debt settlement program outcomes, 2016–2025 [Report prepared for the Association for Consumer Debt Relief].
  2. Association for Consumer Debt Relief. (2026, October 5). New EY study of debt settlement clients highlights the industry’s nationwide impact [Press release]. https://www.webull.com/news/15696257771242496 
  3. Administrative Office of the U.S. Courts. (2026). Table F-2: U.S. bankruptcy courts, business and nonbusiness cases commenced, by chapter, during the 12-month period ending December 31, 2025. https://www.uscourts.gov/sites/default/files/document/bf_f2_1231.2025.pdf 
  4. Administrative Office of the U.S. Courts. (2025). Table F-2: 12-month period ending December 31, 2024. https://www.uscourts.gov/sites/default/files/2025-01/bf_f2_1231.2024.pdf 
  5. Administrative Office of the U.S. Courts. (2023, February 6). Bankruptcy filings drop 6.3 percent. https://www.uscourts.gov/news/2023/02/06/bankruptcy-filings-drop-63-percent 
  6. Administrative Office of the U.S. Courts. (2022, February 4). Bankruptcy filings drop 24 percent. https://www.uscourts.gov/data-news/judiciary-news/2022/02/04/bankruptcy-filings-drop-24-percent 
  7. Administrative Office of the U.S. Courts. (2013, February 4). Bankruptcy filings decline in calendar year 2012. https://www.uscourts.gov/data-news/judiciary-news/2013/02/04/bankruptcy-filings-decline-calendar-year-2012 
  8. National Foundation for Credit Counseling. (n.d.). Client impact. https://www.nfcc.org/clientimpact/ 
  9. FinRegLab, Courchane, M., Gailey, A., Moulton, S., Tragesser, C., & Xie, R. (2023). Debt management insights for distressed borrowers: Credit counseling and lender forbearances post-COVID. https://finreglab.org/wp-content/uploads/2023/08/FRL_DB-CC_AugUpdate_FINAL-1.pdf 
  10. Brady, S. (2026, July 31). Guide to debt relief and debt management programs: The pros and cons of each type. National Foundation for Credit Counseling. https://www.nfcc.org/blog/debt-relief-programs-the-pros-and-cons-of-each-type/ 
  11. Loonin, D., & Plunkett, T. (2003). Credit counseling in crisis: The impact on consumers of funding cuts, higher fees and aggressive new market entrants. National Consumer Law Center and Consumer Federation of America. https://www.consumerfed.org/media/legacy/credit_counseling_report.pdf 
  12. Debt Disclosure Project. (2026, October 26). 9 in 10 consumers who met with a credit counselor wish they had received better information, new data shows [Press release]. EIN Presswire. https://www.einpresswire.com/article/952363425/9-in-10-consumers-who-met-with-a-credit-counselor-wish-they-had-received-better-information-new-data-shows 
  13. Debt Disclosure Project. (2026). Debt cost calculator: Compare total repaid by option. https://www.debtdisclosureproject.org/tools/cost-calculator/ 
  14. Special rules for credit counseling organizations, 26 U.S.C. § 501(q) (2006). Legal Information Institute. https://www.law.cornell.edu/uscode/text/26/501
  15. Money Management International. (n.d.). Debt management plans. https://www.moneymanagement.org/debt-management   
  16. Administrative Office of the U.S. Courts. (2026). Table F-2: U.S. bankruptcy courts, business and nonbusiness cases commenced, by chapter, during the 12-month period ending September 30, 2026. https://www.uscourts.gov/sites/default/files/document/bf_f2_0930.2026.pdf