Bankruptcy Spikes Among Gen X and Millennials: Alarming Debt Crisis on the Horizon

The trend seems to signify that the age groups are entering a debt crisis, just as the U.S. economic situation appears to be improving.

This comes shortly after the release of a favorable report, which suggested that consumer confidence saw a 29% increase when compared to last November.

The data, sourced from millions of legal service requests, suggests that consumers requesting legal assistance and advice on bankruptcy has hit a three-year high.

Some experts have even gone as far as to claim a credit reckoning could be forthcoming for those most affected. 

Debt in the average American household has increased by around 1.3% in last year’s third quarter, reaching a staggering $17.29 trillion. 

With the new financial stress, LegalShield claims people are reaching out for advice on how to deal with bankruptcy. 

According to their figures, Gen Xers seeking assistance has seen an increase of 24.7% in recent years. Meanwhile, Millennials seeking bankruptcy advice have shot up by 40.1%. 

“People don’t call attorneys unless they are genuinely worried about something,” Layton said in a statement shared with Newsweek via email. 

“This is not a survey with leading questions or prompts about the economy; these are real concerns from real people who sought out affordable legal advice to take action,” he said. 

While experts recently reported positive signs for the U.S. economy, LegalShield’s data, unfortunately, shows a “concerning rise in consumer debt struggles—from bankruptcies to car repossessions,” according to Schlichting.

“The rise in consumer stress in contrast to increased spending may point to an even sharper rise in household debt in the coming months,” he said.

Those who were already under financial stress will undoubtedly feel the bite and may be forced to seek legal advice from LegalShield.