States are seeing an increase in debt collection lawsuits, which can lead to drastic financial consequences for consumers.

Collection lawsuits — filed by businesses or debt collectors when borrowers fail to pay a debt, like a credit-card bill or a medical bill — declined during the pandemic years of 2020 through 2022. But they rose sharply in 2023 and 2024, according to a recent analysis of seven states and several large metropolitan areas.

In four of those states — Connecticut, Minnesota, North Dakota and Texas — filings are back at prepandemic levels, and all seven are above 2020 levels, the report, which was conducted by the data consulting firm January Advisors, found.

While the report didn’t include all states and cities, it found the pattern broadly in both urban and rural areas, indicating the trend is probably happening nationwide.

“There is a postpandemic rebound that’s happening,” said Lester Bird, a senior manager for the courts and communities project at the Pew Charitable Trusts, which has developed recommendations on making state debt lawsuit systems more fair.

About a quarter of American adults have debt in collection, and an estimated 4.7 million debt collection lawsuits were filed in courts in 2022, according to Pew.