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Bankruptcy Filing Statistics in the US

Bankruptcy filings have been a growing trend in America lately, and unfortunately about one in every 70 American households have filed for bankruptcy. No matter what age, ethnicity, gender, education level, annual income, employment status or even marital status. The causes of bankruptcy will vary by every individuals unique circumstances, but three of the major reasons for bankruptcy are over extension of credit, unexpected expenses and a income reduction.

The figures below are a visual depiction of bankruptcy statistics provided by the Institute of Financial Literacy[1]. These stats are from the years of 2006, 2007 and 2008; 2009 and 2010 statistics will be available as the statistics are publicly released.

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Education

Percentage of US Population Percentage of Debtors 2006 Percentage of Debtors 2007 Percentage of Debtors 2008
Graduate 8 4.9 5.3 5.3
Bachelors 18 11.2 11.3 12.3
Associates 8 8 8 8.6
Some College 19 29.9 29.8 29.4
High School/GED 41 39.7 39.6 38.5
Primary School 5 5.9 5.3 5.2
None 1 0.4 0.7 0.7
Education 2006

2006 Bankruptcy Statistics by Highest Education

Graduate 4.9
Bachelors 11.2
Associates 8
Some College 29.9
High School/GED 39.7
Primary School 5.9
None 0.4
Education 2007

2007 Bankruptcy Statistics by Highest Education

Graduate 5.3
Bachelors 11.3
Associates 8
Some College 29.8
High School/GED 39.6
Primary School 5.3
None 0.7
Education 2008

2008 Bankruptcy Statistics by Highest Education

Graduate 5.3
Bachelors 12.3
Associates 8.6
Some College 29.4
High School/GED 38.5
Primary School 5.2
None 0.7

Ethnicity

Percentage of US Population Percentage of Debtors 2006 Percentage of Debtors 2007 Percentage of Debtors 2008
African American / Black 13.5 15.3 14.6 12.5
Caucasian / White 81 72.6 72.1 73.3
Latino / Hispanic 15 6.6 6.9 7.4
Asian 5 2.1 2.6 3.6
Native American 1.5 1 0.9 0.8
Other 1 2.4 2.9 2.4
Ethnicity 2006

2006 Bankruptcy Statistics by Ethnicity

African American / Black 15.3
Caucasian / White 72.6
Latino / Hispanic 6.6
Asian 2.1
native American 1
Other 2.4
Ethnicity 2007

2007 Bankruptcy Statistics by Ethnicity

African American / Black 14.6
Caucasian / White 72.1
Latino / Hispanic 6.9
Asian 2.6
native American 0.9
Other 2.9
Ethnicity 2008

2008 Bankruptcy Statistics by Ethnicity

African American / Black 12.5
Caucasian / White 73.3
Latino / Hispanic 7.4
Asian 3.6
Native American 0.8
Other 2.4

Income

Percentage of US Population Percentage of Debtors 2006 Percentage of Debtors 2007 Percentage of Debtors 2008
Less Than 20k 43.8 37.1 41.1 38.4
20k-30k 14.7 21.9 24.5 23.2
30k-40k 11.6 16 15.1 15.9
40-50k 8.2 10.4 8.8 10.1
50k-60k 5.9 6.5 5 5.5
More than 60k 15.8 8.1 5.5 6.9
Income 2006

2006 Bankruptcy Statistics by Income

Less Than 20k 37.1
20k-30k 21.9
30k-40k 16
40-50k 10.4
50k-60k 6.5
More than 60k 8.1
Income 2007

2007 Bankruptcy Statistics by Income

Less Than 20k 41.1
20k-30k 24.5
30k-40k 15.1
40-50k 8.8
50k-60k 5
More than 60k 5.5
Income 2008

2008 Bankruptcy Statistics by Income

Less Than 20k 38.4
20k-30k 23.2
30k-40k 15.9
40-50k 10.1
50k-60k 5.5
More than 60k 6.9

Employment

Percentage of US Population Percentage of Debtors 2006 Percentage of Debtors 2007 Percentage of Debtors 2008
Employed 74.4 63.7 64.2 63.4
Unemployed 3.6 13.1 12.6 13
Retired 15.8 9.4 8.9 8.7
Self-Employed 0 8.3 9 9.9
Homemaker 0 4.5 4.4 4.2
Student 6.2 1 0.9 0.9
Employment 2006

2006 Bankruptcy Statistics by Employment Status

Employed 63.7
Unemployed 13.1
Retired 9.4
Self-Employed 8.3
Homemaker 4.5
Student 1
Employment 2007

2007 Bankruptcy Statistics by Employment Status

Employed 64.2
Unemployed 12.6
Retired 8.9
Self-Employed 9
Homemaker 4.4
Studen 0.9
Employment 2008

2008 Bankruptcy Statistics by Employment Status

Employed 63.4
Unemployed 13
Retired 8.7
Self-Employed 9.9
Homemaker 4.2
Student 0.9

Marital Status

Percentage of US Population Percentage of Debtors 2006 Percentage of Debtors 2007 Percentage of Debtors 2008
Married 52.7 57.1 59.7 62
Single 30.5 21.9 20.2 18.6
Divorced 10.5 15.9 15.6 15.3
Widowed 6.3 3.9 3.6 3.3
Cohabitating 0 1.2 0.9 0.8
Marital Status 2006

2006 Bankruptcy Statistics by Marital Status

Married 57.1
Single 21.9
Divorced 15.9
Widowed 3.9
Chohabitating 1.2
Marital Status 2007

2007 Bankruptcy Statistics by Marital Status

Married 59.7
Single 20.2
Divorced 15.6
Widowed 3.6
Chohabitating 0.9
Marital Status 2008

2008 Bankruptcy Statistics by Marital Status

Married 62
Single 18.6
Divorced 15.3
Widowed 3.3
Chohabitating 0.8

Gender

Percentage of US Population Percentage of Debtors 2006 Percentage of Debtors 2007 Percentage of Debtors 2008
Male 49 46.4 47.2 47.4
Female 51 53.6 53.8 52.6
Gender 2006

2006 Bankruptcy Statistics by Gender

Male 46.4
Female 53.6
Gender 2007

2007 Bankruptcy Statistics by Gender

Male 47.2
Female 52.8
Gender 2008

2008 Bankruptcy Statistics by Gender

Male 47.4
Female 52.6

Age

Percentage of US Population Percentage of Debtors 2006 Percentage of Debtors 2007 Percentage of Debtors 2008 Percentage of Debtors 2009
18-24 7 3.3 2.7 2.2 3.6
25-34 13.5 21 20.3 19.5 22.7
35-44 14.3 29 29.8 29.4 28.6
45-54 14.6 24.9 25.4 26 22.4
55-64 10.9 14 14.3 15.6 13.8
65+ 12.6 7.8 7.5 7.3 8.9

2009 Bankruptcy Statistics by Age

18-24 3.6
25-34 22.7
35-44 28.6
45-54 22.4
55-64 13.8
65+ 8.9

2006 Bankruptcy Statistics by Age

18-24 3.3
25-34 21
35-44 29
45-54 24.9
55-64 14
65+ 7.8

2007 Bankruptcy Statistics by Age

18-24 2.7
25-34 20.3
35-44 29.8
45-54 25.4
55-64 14.3
65+ 7.5

2008 Bankruptcy Statistics by Age

18-24 2.2
25-34 19.5
35-44 29.4
45-54 26
55-64 15.6
65+ 7.3

Causes

Percentage of Debtors 2006 Percentage of Debtors 2007 Percentage of Debtors 2008
Overextended on Credit 62.8 69.2 72.6
Unexpected Expenses 57.2 59.9 57.1
Reduction of Income 52.2 56.7 58.4
Job Loss 36.1 38.1 37.6
Illness/Injury 32.7 35.9 33
Divorce 15.4 16.9 16.6
Birth/Adoption of Child 8.7 9.6 10.4
Death of Family Member 8.3 8.4 8.1
Retirement 5.4 5.6 6
Indentity Theft 2.3 3 2.4
Causes 2006

2006 Bankruptcy Statistics by Causes

Overextened on Credit 62.8
Unexpected Expenses 57.2
Reduction of Income 52.2
Job Loss 36.1
Illness/Injury 32.7
Divorce 15.4
Birth/Adoption of Child 8.7
Death of Family Member 8.3
Retirement 5.4
Identity Theft 2.3
Causes 2007

2007 Bankruptcy Statistics by Causes

Overextened on Credit 69.2
Unexpected Expenses 59.9
Reduction of Income 56.7
Job Loss 38.1
Illness/Injury 35.9
Divorce 16.9
Birth/Adoption of Child 9.6
Death of Family Member 8.4
Retirement 5.6
Identity Theft 3
Causes 2008

2008 Bankruptcy Statistics by Causes

Overextened on Credit 72.6
Unexpected Expenses 57.1
Reduction of Income 58.4
Job Loss 37.6
Illness/Injury 33
Divorce 16.6
Birth/Adoption of Child 10.4
Death of Family Member 8.1
Retirement 6
Identity Theft 2.4

More Bankruptcy Articles and Information

File For Bankruptcy Info

Filing for bankruptcy is never easy especially if the information you have on how file bankruptcy is limited. Here are a few helpful articles that will give you more info on how to file bankruptcy online and by yourself.

 

Chapter 7, Chapter 11, and Chapter 13 Info

We have all heard the terms Chapter 7, Chapter 11, and Chapter 13 bankruptcy, but not everyone knows the difference between the three. Listed below are a few resource links that will help you gather more valuable information on the three chapters and help you decide which one is right for you.

Repossessions and Foreclosures

No one enjoys losing their property especially if its their car or even home. The links below will help you gather more information about your rights as a homeowner and how to be prepared for a foreclosure and/or a repossession.

 

Planning Your Bankruptcy and Hiring a Lawyer

The best way to go into bankruptcy is to hire a lawyer and learn as much about the bankruptcy process as you can. The resources below will give you information on the costs of bankruptcy lawyers and give you more information on how to plan for your upcoming bankruptcy.

 

[1] The Institute for Financial Literacy has been conduction demographic studies of those debtor seeking pre-bankruptcy counseling, in an effort to better understand the socioeconomic pressures driving Americans into Bankruptcy.


Comments

I'm surprised that

Posted by Anonymous on 19 Feb 2010

I'm surprised that foreclosure isn't listed as a common economic pressure driving people into bankruptcy. I work for a bankruptcy attorney, and almost 30% of the clients we get seeking bankruptcy protection are using it as a defense against a foreclosure lawsuit. The housing market has been putting unbelievable financial pressure on many families, with mortgages adjusting to unmanageable rates, and principle balances far exceeding the value of the property, leading to many homeowners ending up under water.

Yeah, of course everyone

Posted by Anonymous on 18 Feb 2010
Yeah, of course everyone filing for bankruptcy is overextended on credit. Why else would you file for bankruptcy? Maybe we should all just put away the credit cards and go back to the way our parents did it. You save up the money before buying that plasma TV or new BMW. We've become a "bling" generation addicted to immediate material gratification and have lost all sense of fiscal responsibility.

Intriguing, it is funny how

Posted by Anonymous on 18 Feb 2010
Intriguing, it is funny how being married and being overextended on credit go hand in hand. My wife continues to spend my paychecks every two weeks and we continue to get deeper and deeper in debt. I think I will show her this article to help change her spending habits.

funny how you have to show

Posted by Anonymous on 19 Feb 2010
funny how you have to show her an article to even consider her from making a smart choice... Your marriage is an insult. You need a divorce. You're probably ugly too.

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