Bankruptcies Surge Among Gen X and Millennials:

An uptick in bankruptcy assistance among Generation X and Millennials signals a burgeoning debt crisis, overshadowing recent economic optimism, legal experts told Newsweek.

In contrast to recently issued positive economic data showing a 29 percent surge in consumer confidence since November, LegalShield’s December Consumer Stress Legal Index (CSLI) documents a relentless rise in financial duress, reaching a three-year peak as consumers seek legal help for bankruptcy and other legal assistance. The data, drawn from over 35 million legal service requests, is forecasting a dip in that consumer confidence, and exposes a groundswell of fiscal challenges.

The trend, disproportionately impacting younger generations, points to a latent economic strain that macroeconomic figures may not fully capture, which hints at a potential credit reckoning on the horizon.

It’s reflected in broader economic data. U.S. household debt has seen an increase, rising 1.3 percent in the third quarter of last year to a record $17.29 trillion. The uptick was propelled by increases across mortgage, auto loan, credit card, and student loan balances, according to the Federal Reserve Bank of New York.

At least some of those people are now dealing with bankruptcy, and are reaching out to LegalShield for advice.

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