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Bankruptcy among twenty- and thirtysomethings might be on the rise. 

Mar 23 2026

Bankruptcy among twenty- and thirtysomethings might be on the rise. Though there is no national data on how many young adults are filing for personal bankruptcy, two lawyers told Business Insider the number of 25-35-year-olds coming to them for it is increasing. For one, the share of clients that age went from 5-10% in the past to 30-35% last year, while another noted 20% of clients fell in that range. Bankruptcy filings since COVID have been increasing generally, which may account for some of the increased numbers among young people, too. But some point to debts like buy now, pay later and sports gambling as especially problematic, as costs for housing and necessities soar over wage increases and student debt is typically not eligible to be cleared. The two lawyers specifically cited young men racking up credit-card funded gambling debt as part of the upward trend in bankruptcy, as it can quickly pile up and become impossible to manage. (Business Insider)

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