At the peak of the recession, over one million Americans were filing for bankruptcy each year. In fact in 2008, 1.07 million U.S. residents filed some form of bankruptcy. Who are these millions of people? Bankruptcy statistics have yielded some interesting facts about these individuals. According to the Institute for Financial Literacy and the U.S. Courts, “The average American who filed bankruptcy…was Caucasian, 35-44 years old and married; had a high school education; and made less than $30,000.”
Statistically, people who had a high school education only or a GED are more likely to file for bankruptcy than those with at least some college education. In 2008, 38.5 percent of people filing for bankruptcy had up to a high school education or GEO while 12.3 percent of those filing for bankruptcy had obtained a Bachelor’s Degree. Interestingly enough, more people with Bachelor’s Degrees filed for bankruptcy than those with only Associate Degrees by about four percent.
There was also a notable gender split when it came to bankruptcy filings at the height of the recession. Statistically, 52.6 percent of people filing for bankruptcy during this time were female and 47.4 percent were male. While the stats are close to even, there is still a difference worth mentioning.
Employment and net income also played a large role in who filed for bankruptcy at the height of the recession. The largest majority of those filing for bankruptcy made less than $20,000 per year and were employed. In total, 37.1 percent of bankruptcy filers made less than $20k/year and 63.4 percent were employed at the time of filing. The groups that filed bankruptcy the least were those who made between $50-60k per year and those who fell under the category of “student.”
The median age of a college student typically is in the 20s, this age group was also the least likely to file for bankruptcy. This could be because by this age, an individual has not yet accrued enough debt to require bankruptcy as a means of relieving that debt. This could also be because the average homeowner is between the ages of 30-45. A large contributing factor to the recession was the housing market, which could explain why so many in this category filed for bankruptcy near the year 2008.
Between the years 2008 and 2009, 48,789 Texans filed for bankruptcy. This averages out to two bankruptcies per one thousand residents. When compared to other states in the U.S., Texas bankruptcy filing rates were much lower. States like Georgia had rates of 7.2 filings per thousand residents and Nevada’s rate was 9.4 per thousand.
If you are struggling to pay off your debt, get in touch with a San Antonio bankruptcy attorney from Malaise Law Firm. Our exceptional representation and compassionate service can help you get a hold of your debt and move on to a fresh start. Call today for a consultation.