Middle-Aged Americans Are Filing for Bankruptcy at the Highest Rate Since 2017 — Debt, Inflation and Soaring Gas Prices Are Piling on the Pressure

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Americans aged 40 to 59 now account for nearly half of all new consumer bankruptcies, the largest share for that age bracket since 2017, as middle-aged households buckle under debt and rising costs.

Consumers aged 40-49 made up 26.8% of new bankruptcies, the highest share for that age group since the third quarter of 2015 and the largest of any single bracket, according to data shared by The Kobeissi Letter.

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The 50-59 group accounted for another 23.1%, bringing the combined share of Americans aged 40-59 to 49.9%, the highest since the first quarter of 2017, though still below the 54.3% peak in the fourth quarter of 2011 following the financial crisis.

BREAKING: US consumers aged 40-49 now account for 26.8% of new consumer bankruptcies, their highest proportion since Q3 2015 and the largest among all age groups. At the same time, the 50-59 group represents 23.1%, bringing the combined proportion of Americans aged 40-59 to… pic.twitter.com/S5YkxJjVmJ — The Kobeissi Letter (@KobeissiLetter) September 15, 2026

BREAKING: US consumers aged 40-49 now account for 26.8% of new consumer bankruptcies, their highest proportion since Q3 2015 and the largest among all age groups. At the same time, the 50-59 group represents 23.1%, bringing the combined proportion of Americans aged 40-59 to… pic.twitter.com/S5YkxJjVmJ

The Kobeissi Letter (@KobeissiLetter) September 15, 2026

Younger and Older Americans Move in Opposite Directions

Americans 70 and older now make up 21.5% of new bankruptcies, their largest share since the second quarter of 2017, while adults aged 18-29 account for just 5.9%, their lowest share since mid-2014.

"Older Americans are falling behind on their debt," the market commentator added.

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Credit card and auto loan balances each rose 1.7% in the second quarter of 2026, while home equity lines of credit rose for a 17th consecutive quarter, according to the Federal Reserve Bank of New York.

Student loan delinquencies also ticked up, with 10.6% of balances now 90 or more days past due.

U.S. annual inflation held at 3.4% in August, matching July, while prices rose 0.4% for the month, according to the Bureau of Labor Statistics.

Gasoline was the single biggest driver, jumping 3.9% and accounting for more than a third of the entire monthly increase, with fuel oil up 52% over the past year.

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