Why Young People on TikTok Are Talking Bankruptcy — And Why It Could Be the Right Move for You

What’s behind the rise of bankruptcy on TikTok? And what does it mean for bankruptcy trends that so many young people are talking about it?

Lately there’s been a noticeable increase in short clips of 20‑ and 30‑somethings on TikTok declaring “I filed bankruptcy and got my life back.” The hashtag posts are climbing, videos are getting millions of views, and bankruptcy is suddenly less of a shameful conversation and more of a… trend?

According to recent data, searches for “file for bankruptcy yourself” have surged. Bankruptcy TikToks are up 600%, and younger adults are among the fastest‑growing groups considering it.

As a bankruptcy lawyer, I think this can actually be a good thing. More people are exploring their options and deciding they don’t have to keep sinking under debt.

But – and it’s a big “but” – filing for bankruptcy is not something to jump into because it’s trending. It’s a major decision with real consequences. And you’ll want a law firm that treats it that way.

Why Bankruptcy Is Trending Among Young Adults

Heavy debt from the start.

Many young people graduated with student loans, entered a high‑cost housing market, took on credit cards, and now face rising interest rates and unexpected medical bills. It may be harder than ever to enter your late 20s and early 30s without significant debt of some kind.

Social media openness.

On TikTok, users often get rewarded for their openness and building a narrative that people can empathize with. Experiencing debt, filing for bankruptcy, and starting over can build into one cohesive story that young people relate to: “Here’s what happened,” and “here’s what I learned.”

A focus on fresh starts.

Filers say they wanted to hit the reset button and stop waiting for things to get better. Bankruptcy offered a way to move forward instead of being stuck. At a time when a lot of young people are looking for hope, the idea of a fresh start can be incredibly inspiring.

Why Bankruptcy Can Be the Right Move for Younger People

Bankruptcy can be an incredible tool.

First, it gives you legal protection. Filing triggers the “automatic stay,” which stops most creditors. It stops lawsuits and wage garnishments. And it can save you from stress and financial damage while you rebuild.

It also gives you time to recover. A younger person has decades ahead to rebuild credit, save for retirement, buy a home again. Bankruptcy doesn’t end your financial story – it lets you write a fresh chapter.

And lastly, it isn’t one size fits all. You do have some options. Younger filers often benefit from understanding both major paths:

  • Chapter 7 — Clears out unsecured debts (like credit cards and medical bills) quickly, if you qualify.
  • Chapter 13 — Lets you pay back debts under a court‑approved payment plan, which might help if you have a steady income and want to keep something like a vehicle or home.

With the right selection and guidance, you can choose the option that fits you.

Why You Should Be Careful (and Choose a Firm That Will Help You)

Social media videos can make bankruptcy look like a quick fix, but that’s not exactly accurate.

The reality: there are eligibility tests, costs, credit impact, and some debts (like student loans or tax debts) may not disappear.

Your firm should explain all risks and alternatives. Before filing, you should know if debt settlement, negotiation, or a budget plan might be better. A good firm will walk you through these, and not just push the fastest filing.

Especially at a young age, you’ll want a lawyer who’s committed to helping you rebuild and not leave you wondering what’s next. We offer resources to our younger clients like our free reports on Life After Bankruptcy and How to Improve Your Credit to an A+.

How you navigate your bankruptcy will affect your life later, from cars to credit. The firm you pick should be willing to help you every step of the way.

Ready to Talk? How Our Lawyers Can Help

If you’re young, feeling overwhelmed by debt, and you’re seeing bankruptcy on your feed and wondering “Is that me?”– it might be.

What you should do is find a lawyer who will:

  • Listen to your full story (income, expenses, goals)
  • Explain whether Chapter 7 or Chapter 13 fits you – or if you should consider a different option
  • Map out what your life after bankruptcy could look like
  • Help you make the best decision for you

I offer a free consultation to go over everything and answer any questions you might have. So if you’re ready to explore your options, I’m here.

Contact me online today for your free consultation, and let’s get you started on the path to a fresh start.