"On TikTok, a wave of recent videos under the "bankruptcy" hashtag shows young people framing their personal bankruptcy filings as life-changing wins, drawing hundreds of thousands of views. In clips viewed by Business Insider, individuals touted their bankruptcy filings as the "greatest" and "best" decision they've ever made, saying it allowed them to wipe out massive amounts of debt - sometimes tens of thousands of dollars - in just a few months."
"This celebratory sentiment comes as personal bankruptcies rise nationwide. According to the American Bankruptcy Institute, citing data from Epiq Bankruptcy Analytics, individual bankruptcy filings have been climbing since 2022, with more than 533,000 cases last year. Nearly 333,000 of those filings were Chapter 7 cases, the most common form of personal bankruptcy, which can eliminate most unsecured debts such as credit card balances or medical bills."
Social media users on TikTok present personal bankruptcy filings as liberating financial resets, with videos under the "bankruptcy" hashtag framing filings as life-changing wins and drawing hundreds of thousands of views. Individuals report wiping out massive amounts of debt, sometimes tens of thousands of dollars, within months. Personal bankruptcies have risen nationwide, with more than 533,000 individual filings last year; nearly 333,000 were Chapter 7 and just over 200,000 were Chapter 13 cases. Chapter 7 can eliminate most unsecured debts like credit cards or medical bills. Certified financial planners caution that bankruptcy carries long-term risks including higher borrowing costs, damaged credit, and multi-year credit-report marks.
Read at Business Insider
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