Younger Adults Are Filing for Bankruptcy

Bankruptcy filers are often presumed to be middle-age or older adults who have spent a significant number of years incurring debt and struggling to get back on track financially. Yet young people also file for bankruptcy, and according to a recent report in Business Insider, even more younger Millennials and Gen Z adults are filing for bankruptcy. What is leading to the rise in bankruptcy filings among younger adults? And if you are part of this group and considering a bankruptcy filing, what do you need to know? Our Florida bankruptcy attorneys can say more, and we can speak with you in detail about your case today.

Rise in Bankruptcy Filers Between Ages 25 and 35

According to the Business Insider article, bankruptcy filings are rising in general, but particularly among younger adults between the ages of 25 and 35. In the lower end of that age range, many filers are only a couple of years out of college. What is leading to the rise in personal bankruptcy filings among this younger group of adults?

The report suggests that a number of different factors are at work, including “soaring living costs, lagging wages, and the ease of racking up credit card debt.” In particular, younger adults are more likely to take advantage of “buy now, pay later” loans, while online betting has also grown in popularity among this age group.

Filing for Bankruptcy As a Younger Adult

If you are a recent college graduate or a younger millennial, you may be considering bankruptcy as a result of what the Business Insider article describes as “one of the most financially distorted environments in decades.” For those who are considering bankruptcy due to factors such as credit card debt, personal loan debt (including “buy now, pay later” debt), and student loan debt, is there anything in particular that you need to consider based on age and financial history?

The age of a bankruptcy filer does not matter for purposes of eligibility. Younger adults, like older adults, must pass the “means test” if they want to qualify for Chapter 7 bankruptcy. Yet Chapter 13 bankruptcy can also be an option, allowing debtors to reorganize debt and to catch up on secured loans such as a mortgage or an automobile. Since 2022, more debtors than ever are also having student loans discharged in bankruptcy cases, which can be particularly helpful to know for filers between the ages of 25 and 35 who are struggling with student loan debt.

Contact a West Palm Beach Bankruptcy Attorney for Assistance Today with Your Bankruptcy Petition

No matter what age you are, filing for personal bankruptcy could be a solution to the crippling debt that you are experiencing. While you will need to pass the means test to qualify for a Chapter 7 liquidation bankruptcy, you can also consider a Chapter 13 reorganization bankruptcy that will not require the liquidation of any assets and will allow you to catch up with creditors and become current on your debts. Whether you are a younger adult, an older adult, or of an age between, one of the experienced West Palm Beach bankruptcy lawyers at Kelley Kaplan Delaney & Eller, PLLC can begin working with you today on your bankruptcy filing. Contact us to find out more about the services we provide to debtors in South Florida.

Source:

businessinsider.com/young-adults-financial-problems-bankruptcy-lawyers-credit-card-debt-2026-3