Rise in Bankruptcy for Millennials and Generation X
Rise in Bankruptcy for Millennials and Generation X
Despite recent economic data reports showing a 29% increase in consumer confidence since November of 2023, LegalShield’s December Consumer Stress Legal Index displays a worrying rise in financial pressures. According to these documents, more consumers, especially Generation X and Millennials, are seeking legal help for bankruptcy and repossession than in previous years, marking a three-year peak.
The Bigger Picture
According to Newsweek, bankruptcy filings are up 24.7% for Generation X and up 40.1% for Millennials. This rise in bankruptcies is no coincidence. The economic strain on younger generations is clearly reflected in broader economic data. American household debt has risen 1.3% in the third quarter of 2023, now at $17.29 trillion. This was due to marked increases in debt balances across the board, including mortgages, credit cards, auto loans, and student loans.
Why Bankruptcy Could Be the Answer
Bankruptcy can sound daunting, but it could be the answer to the financial burdens that younger generations are now experiencing. It can help clear credit card debts, auto loan debts, medical debts, and, in some cases, student loans.
These debts can be overwhelming financially by garnishing your wages and mentally by having various creditors banging at your door. Luckily, filing for bankruptcy can help with both of those problems. Not only will filing discharge your debt or put it into a repayment plan, but it will force garnishments and creditor calls to cease.
Bankruptcy can even help you in the case of repossession of your vehicle or other property. Repossession can be halted or prevented when you file a chapter 13. We achieve this through the initiation of an automatic stay. An automatic stay prevents your creditors from taking further action against you.
Is Bankruptcy Right For You?
Are you are interested in learning more about how bankruptcy can help you? Call us at the Law Offices of Dax J. Miller. We can set you up with a phone consultation – free of charge.
