Gen X and Millennial Bankruptcy Filings
Are Americans in certain generations more likely to file for bankruptcy than people of other ages? A report in Newsweek suggests that bankruptcy filings are particularly high among two generations: Generation X (GenX), whose birth years run from 1965 to 1980, and Millennials, whose birth years span from 1981 to 1996. The data indicates that bankruptcy filings are not only high among people of these generations, but that they are also increasing. Those facts could signal “a burgeoning debt crisis, overshadowing recent economic optimism,” according to the report.
What should debtors in South Florida know about the findings, and what is important to consider when it comes to individual bankruptcy? Our West Palm Beach bankruptcy attorneys can tell you more, and we can speak with you today about the details of your financial situation.
Details of GenX and Millennial Bankruptcy Cases
With more debtors from the GenX and Millennial generations filing for bankruptcy — and at an increasing rate — there is a growing trend toward younger bankruptcy filers. Commentators believe the rising rate of bankruptcy filings among debtors of these generations has been due in part to a rise in household debt, which has been “propelled by increases across mortgage, auto loan, credit card, and student loan balances.”
Perhaps one of the most notable data points is that, when GenX and Millennial debtors are compared, Millennials are filing for bankruptcy, experiencing property repossessions connected with secured loans, and taking out payday loans at a higher rate than GenX-ers.
Additional Factors to Consider
Although recent data suggests that debtors who are part of the Generation X or Millennial generations are more likely to file for bankruptcy than people in older or younger generations, there are other factors to take into account. In short, the beginning of the GenX generation and the end of the Millennial generation spans 31 years — from 1965 to 1996 — and now accounts for most adults of working age.
Indeed, the oldest GenX-ers are 59 years old as of 2024, which means that many are nearing or at least beginning to think about retirement. Accordingly, a large percentage of Baby Boomers are already firmly of retirement age, which means there is a strong possibility that many of their assets such as Social Security and retirement accounts are protected, so bankruptcy might not be as pressing or common. The youngest Millennials are currently 28 years old, and many are just reaching a point in adulthood where they have taken on debt and have spent some years trying to determine the best options for managing it.
In addition, given that it has become easier to have student loans discharged in bankruptcy, some of the GenX and Millennial debtors who are struggling ultimately may be able to take full advantage of a fresh start from bankruptcy with the discharge of student loans.
Contact a West Palm Beach Bankruptcy Attorney Today
Do you have questions about individual bankruptcy, or the different types of bankruptcy available to debtors of various age groups and socioeconomic brackets? One of the experienced West Palm Beach bankruptcy lawyers at Kelley Kaplan & Eller, PLLC can speak with you today to provide you with additional information about bankruptcy options.
Source:
newsweek.com/genx-millennials-bankruptcy-surge-financial-crisis-1864074
