Are Fewer Young People Are Filing for Bankruptcy?

Posted on : September 5, 2018, By:  D.C. Higginbotham

A new study shows that younger people are less likely to consider bankruptcy than in recent years, which is most likely an indication of the conclusion of the great recession.

However, there is also ample evidence that millennials and their slightly older counterparts have significant credit card and student loan debt. In fact, plenty of studies have drawn a connection between rising student loan debt and divorces and the fact that some millennials are not able to engage in decisions requiring advanced purchasing power, such as buying their first home.

Financial difficulties can present themselves suddenly in the event of a medical emergency. A person who requires sudden surgery might realize that their insurance doesn’t cover all the costs after the fact and then that person can be responsible for significant medical expenses. A new study completed by the Consumer Bankruptcy Project found that the bankruptcy rate dropped by 78% between 1991 and 2016 for those Americans between the ages of 18 and 24.

Additionally, for the age category between 25 and 34, bankruptcy is decreased by 64%, but bankruptcies increased by 66% in pre-retirement ages. If you or someone you know is contemplating filing for bankruptcy, you need to have all of the facts in order to make an informed decision about your future. A bankruptcy attorney can dispel many of the most common myths that prevent people from filing bankruptcy as soon as they need it. The longer you wait to get financial help, the deeper your financial hole could be.