Young Americans Increasingly Filing for Bankruptcy Amid Economic Challenges
Consumer bankruptcy attorneys have reported a significant rise in bankruptcy filings among Gen Z and young millennials in the United States. This trend is attributed to various factors, including rising living costs, stagnant wages, and easy access to credit. According to Florida bankruptcy attorney Chad Van Horn, these young individuals are not filing for bankruptcy due to irresponsibility but because they have entered adulthood during a financially challenging period. In 2025, over 533,000 individual bankruptcy cases were filed, marking an 11% increase from the previous year. The increase in bankruptcies is occurring as Americans face high prices and elevated borrowing costs, which are remnants of government stimulus and economic pressures that have kept wages flat. 
