Gen-Xers Who Lost Big During Recession May Benefit From Chicago Bankruptcy
Members of every age group have watched their net worth decline in recent years. However, members of Generation X seem to have suffered the greatest losses.
From 2005 to 2010, people between 35 and 44 years old saw their median household worth fall by nearly 60 percent, from $80,521 to $33,200, according to MSNBC.com.
Nationwide, median net worth in all age groups dropped by 35 percent during the same 5-year period. As our Chicago bankruptcy lawyers reported earlier this month, the wealth of American families dropped from $126,400 to just $77,300 in 2007 alone.
Why have 30-somethings taken the hardest hit? There are a host of reasons.
First and foremost, you can blame the real estate market. Many people in their 30s and early 40s purchased their first home at the height of the housing bubble, only to watch their house's value drop by half (or more) just years later.
Unfortunately, many had already taken out expensive equity loans and amassed large amounts of credit card debt - often on top of crippling student loan debt.
As tough economic times prevent many baby boomers from retiring, Gen Xers are having a tough time moving up the career ladder.
And then there's the cost of having a family. People in their 30s and 40s are likely to be raising children. Between food, clothing, and health care, the USDA estimates that it will cost $234,900 for parents to rear a child born in 2011.
It seems that no group has more to lose than Generation X. But by the same token, Gen Xers also have the most to gain. Recovery from such devastating financial blows won't happen overnight. But in many cases, a Chicago bankruptcy filing can speed up the process.
Bankruptcy can't eliminate every form of debt. But by taking the sting out of unsecured debts like credit card debts and medical bills, it can make payments on the mortgage and student loans more affordable.
When growing credit card debt is under control, your paycheck will stretch farther and your credit can begin to heal. Depending on your situation, you may be able to stop foreclosure with Chapter 13 bankruptcy.
If it feels like you're taking financial hits from all angles, bankruptcy may be able to provide the protection - and hope - that you need.
It's never too late to speak with a professional Chicago bankruptcy attorney about improving your financial situation. Call the DebtStoppers Bankruptcy Law Firm at 800-440-7235 today for your free personal debt analysis.
More Blog Entries:
U.S. Families Lost Over One-Third of Wealth in Recession; Chicago Bankruptcy Can Aid Financial Recovery: June 13, 2012
For Young Adults Forced to Move In With Mom and Dad, Chicago Bankruptcy Can Offer Independence: June 2, 2012
Additional Resources:
Gen X May Have Taken Biggest Hit in Economic Downturn, by Allison Linn, MSNBC.com