South Florida personal and business bankruptcies are becoming the proverbial canary in the coal mine for financial distress as Iran war-driven energy prices and other rising costs add pressure to the ability to pay off debts.

Figures from the U.S. Bankruptcy Court the Southern District of Florida show filings are on the rise this year versus 2025 for Chapter 7 liquidations, Chapter 11 reorganizations and Chapter 13 bankruptcies that carry repayment plans.

Daniel Gielchinsky, of the business law firm DGIM Law in Aventura, said consumers who are not spending the way they used to are hurting businesses.

Tariffs are impacting clients who are paying higher costs for the imported goods they sell to customers, Gielchinsky said. And rising labor and insurance costs also are headwinds for businesses, he said.

In South Florida, restaurants and surgical centers are among the businesses taking refuge in bankruptcy court, or closing altogether.

“There are too many surgical centers and too much competition,” Gielchinsky said. “We had a case like that. The surgical center had fallen behind on its rent for several years.”