Analysis: More Young Adults Filing for Bankruptcy
Bankruptcy filings among 18- to 29-year-olds have surged nearly 17% from Q1 to Q2 of 2024 and are up 13% compared to last year, according to Forbes. While the pandemic sparked a drop in filings due to relief measures, debt among young adults has since risen, reaching $1.12 trillion for 18- to 29-year-olds. Filings have jumped 50% since a 24-year low in early 2022. There’s been a rise in both potential and actual bankruptcy filings since late 2022, and the trend has continued into 2023, says Justin Gillman, bankruptcy attorney at Gillman, Bruton & Capone, LLC in New Jersey. “This trend aligns with several other factors, such as rising interest rates, which have driven up minimum payments on credit card debt, making it even harder for people to keep up with their financial obligations.” [as reported in American Bankruptcy Institute 9/12/24 e-newsletter]