Bankruptcy Indiana

Interesting… back in 2007, the Kansas City Star ran a headline saying "College Freshmen Flunk Money Management", pointing out that people under the age of 25 are now the fastest-growing group of bankruptcy filers."

Then, just this month, I read an article in the Journal of Financial Planning that made exactly the opposite observation. (As a bankruptcy attorney in Indiana, I like to read journals in the fields of employee benefits, insurance, and financial planning, so that I can offer the most comprehensive advice to my bankryuptcy clients.) The Journal talked about a survey recently conducted by TheMint.org and Northwestern Mutual Life.

When asked, "If you spotted a great item at the mall that you couldn't afford right now, what would you do?" 54% of people 29 years old and younger responded they'd save money each month until they had enough money to afford that item. (Only 42% of people aged 30 and up said they'd set aside money rather than buy the item on credit.) Only 7% of the under-30's said they'd charge items on a credit card and worry about the debt later, compared with 13% for the over-30 crowd.

The Journal of Financial Planning concludes today's kids might become "the most financially clued-in generation since the 1940's.

I'd like to think that fewer and fewer young people will be needing my services, but unfortunately, that's not my prognosis for Gen X and Gen Y any time soon.  The problems that have younger people visiting one of my four Indiana bankruptcy law offices, in the majority of cases, have nothing to do with over-spending on luxuries. Instead, what I'm seeing is a lethal combination of student loan debt, job losses, and medical bills, along with the rising cost of housing.

Don't get me wrong - financial education for all ages is highly beneficial and sorely needed, and, following a recession, as the Journal points out, people of all ages tend to be more cautious in their spending.  The bottom line in all this is - there's no age discrimination in bankruptcy!