For young people in debt, bankruptcy seems like a get out of jail free card. Is it?
By Katie Kelton, CCC, Bankrate.com
When Whitney Catalano filed for Chapter 7 bankruptcy in 2022, she was self-employed, living in an apartment she couldn’t afford and carrying $60,000 in credit card and personal loan debt. For her, bankruptcy looked like freedom.
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“I felt very overwhelmed by money,” she says. “I wanted to clear myself of this chapter and really restart from a clean slate.”
Catalano is one voice in a chorus of TikTok accounts lauding bankruptcy. It goes something like this: People in their 20s and 30s film their stories of filing for bankruptcy, calling it the best decision they ever made. Or in modern meme talk: “‘You look happier.’ Thanks, I filed for bankruptcy.”