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Chapter 13 bankruptcy could even help wealthy millennials

The American dream usually involves putting some money away, creating a secure financial base and even buying a home. However, that dream feels out of reach for a large number of millennials in California. Struggling under significant amounts of debt while dealing with the affordability crisis, even the wealthiest individuals in this generation believe that getting out of debt is simply impossible. However, they may not have considered whether Chapter 13 bankruptcy could help their situations.

D.A. Davidson -- a firm offering financial services -- performed a survey in which they spoke with 1,000 adults who have investable assets totalling $250,000 or more. They determined that 75% of respondents started saving money before the age of 35. Looking at only millennials, which were defined as adults between the ages of 21 and 38, the survey showed that 90% had started their savings before 35.

These millennials have about 50 times more cash than the average millennial in America. Despite having more disposable cash on hand, 36% said they expected to retire with at least some debt. This might seem surprising, but millennials carry more debt than previous generations at the same age. MagnifyMoney reports that liabilities make up 44% of the average millennial's assets.

Their outlook on savings is not great either. In the same D.A. Dodson survey, many millennials reported that they expect to spend most of their savings providing care for family members. This broke down to 61% who believe they will have to help support adult children, and 66% who expect to support aging parents.

The millennial outlook on debt may seem pessimistic, but it is likely rooted in the fact that many hit adulthood during a time of great financial security. Coupled with the staggering amount of debt that many carry, a future without debt can feel impossible. However, getting rid of debt is not impossible with bankruptcy. Since a financial crisis does not distinguish between California residents who consider themselves wealthy and those of lesser means, Chapter 13 bankruptcy can be an invaluable path toward financial freedom.

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