Judge Sarah Sharer Curley, who retired from the U.S. Bankruptcy Court for the District of Arizona in 2014, has published a book examining the causes and consequences of personal bankruptcy in America. In recent interviews, she discusses how structural economic challenges and policy changes are driving more Americans to seek debt relief through the courts.
Bankruptcy filings have risen sharply in recent years, with more than half a million personal cases filed in 2025, representing nearly a 50% increase from three years earlier, according to federal court records. Curley emphasizes that individuals filing for bankruptcy are not committing fraud but rather facing genuine hardship from job loss, medical emergencies, natural disasters, or unsustainable debt loads. She notes that many filers are employed but work as independent contractors or multiple part-time positions with minimal benefits, indicating broader concerns about labor market quality despite relatively low unemployment rates.
Student loan debt represents a particular area of concern for Curley. She describes cases involving borrowers with six-figure balances accumulated through public service careers or professional education programs costing hundreds of thousands of dollars. She points to a specific case involving a woman in her 70s carrying over $584,000 in federal student loans dating back to the 1970s, which had accumulated despite low lifetime earnings in public sector work. Despite eventually receiving partial relief through recognition of her public service years, the case illustrates the difficulty borrowers face in obtaining debt discharge under existing bankruptcy law.
Curley expresses concern about recent policy developments affecting student loan borrowers. She characterizes a bill passed in July 2025 as creating unrealistic federal loan caps that push borrowers toward private loans at substantially higher interest rates. She illustrates the impact with an example of a medical school student needing a $300,000 loan; with a lower credit score, such borrowing could carry a 16% interest rate, resulting in monthly payments exceeding $5,000 and total interest costs above $300,000. Curley predicts these conditions will likely drive additional bankruptcy filings as such debt loads become unsustainable for most individuals.
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