Consumer bankruptcy attorneys reported that adults aged 25 to 35 comprised up to 35% of individual bankruptcy filings in 2025, marking a sharp increase from historical levels. There were more than 533,000 individual bankruptcy cases filed in the United States in 2025, according to data from the American Bankruptcy Institute and Epiq Bankruptcy Analytics.

Nearly 333,000 of the individual bankruptcy filings in 2025 were Chapter 7 cases. Chapter 13 filings accounted for just over 200,000 individual bankruptcy cases in 2025.

Consumer bankruptcy attorneys Chad Van Horn and Ed Boltz said they have seen an increase in the number of clients aged 25 to 35 filing for bankruptcy in recent years. At Van Horn's bankruptcy law firm, 30% to 35% of roughly 4,000 clients last year were between the ages of 25 and 35, up from 5% to 10% historically. Boltz's firm handled about 2,000 bankruptcy cases in 2025, with about 20% of clients aged between 25 and 35.

"We're definitely seeing more young filers, and it's not because they're irresponsible. It's because they entered adulthood during one of the most financially distorted environments in decades," Van Horn said.

The attorneys cited rising living costs, stagnant wages, and the ease of racking up credit card debt as drivers of the increase in bankruptcy filings among young adults. Young adults face escalating housing and living costs that strain their budgets. Young filers often carry student loan debt, which is generally not dischargeable in bankruptcy.

Loans under buy now, pay later programs and online betting are accelerating the rate at which some young people accumulate debt. "The apps are explicitly designed to part you from your money," Boltz said. He said he has seen clients in their mid-20s to early 30s incur tens of thousands of dollars in credit card debt through online gambling.

"What we're seeing is sort of the hangover from several years of government stimulus and all the various economic things that have driven up costs and expenses while keeping wages fairly flat," he said.

Personal bankruptcy filings in the United States have been on the rise since their COVID pandemic-era low in 2022. Personal bankruptcy cases in the United States peaked at about 1.5 million in 2010.