Bankruptcy filings among 18 to 29-year-olds have surged 17% from Q1 to Q2 of 2024 and are up 13% compared to last year.
While the pandemic produced 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.
This trend is aligned with other factors, including rising interest rates, which have driven up minimum credit card payments. Some people avoid filing for bankruptcy due to the fear of damage to their credit and the stigma of being labeled ‘financially irresponsible,’ even when it could offer a much-needed fresh start.
While bankruptcy is often considered damaging to a person’s credit score, that is not entirely accurate. Many people’s credit score is already struggling by the time they consider filing.
Filing for bankruptcy can actually give your credit score a boost once your debts are wiped out, as long as you have a solid plan to rebuild your credit strategically. There are two main types of consumer bankruptcies: Chapter 7 and Chapter 13, and choosing the right one depends on your financial situation. To see if bankruptcy is the right choice for you, start by talking with an experienced attorney who specializes in bankruptcy law.
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If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.