US Bankruptcy Facts and Figures

BANKRUPTCY Facts & Figures BANKRUPTCY FILINGS Total Bankruptcy Filings by Bankruptcy Chapter. Years Ended March 31, 2008-2013. Chapter 7 Chapter 13 | Other 2013 Total: 1,170,324 2012 Total: 1,367,006 2011 Total: 1,571,183 2010 Total: 1,531,997 2009 Total: 1,202,395 2008 Total: 904,880 500,000 1,000,000 1,500,000 2,000,000 The map below summarizes Chapter 7 and Chapter 13 bankruptcies, through the third quarter of 2012. Filings per capita (1,000 people), by state. Filings per 1,000 people 4 -4.9 3- 3.9 2-2.9 1-1.9 6+ 5-5.9 WA NH ND ME MT MN VT OR ID SD WI NY RI WY NE IOWA CT PA NV UTAH IL IN NJ CO OH WV DE CA KS MO MD VA KY DC NC OK TN AR AZ NM SC MS AL GA ALASKA TX LA FL. HAWAII GENDER The Gender Gap in bankruptcy filings is closing 60 50 40 30 20 Male 10 Female 2006 2007 2008 2009 2010 AGE Debtors ages 35 to 54 totalize more than half of the filers. 30 25 18 – 24 25 - 34 20 35 – 44 15 45 – 54 10 55 – 64 5 65+ 2006 2007 2008 2009 2010 I- BK 2010 -I- Census 2010 30% The spike in the percentage 25% of debtors in the age 20%- cohorts of 35-44 and 45-54 15% creates a contrast when 10% compared against the 5% general population. 0% 18-24 25-34 35-44 45-54 55-64 65+ AGE COHORT ETHNICITY T.I. 71.63% of debtors are Caucasian/White 80 70 60 50 African American/ Black 40 Caucasian/White 30 Latino/Hispanic 20 Asian 10 Native American Other 2006 2007 2008 2009 2010 EDUCATION Over 70% of debtors didn't graduate from college 40 35 30 25 Graduate Bachelor's 20 Associate's 15 Some College 10 High School/ Primary School None 2006 2007 2008 2009 2010 Individuals at greatest risk of filing are those who have started college but not finished. This we suspect is because they have all the burdens of school related debt and none of the rewards of an actual degree. INCOME The majority of bankruptcy filers earn $40,000 a year or less 50 40 30 Less than $20k $20k – $30k 20 $30k – $40k $40k – $50k 10 $50k – $60k More than $60k 2006 2007 2008 2009 2010 EMPLOYMENT 58,51 are employed 80 70 60 Employed 40 Unemployed 30 Retired Self-Employed Homemaker 10 Student 2006 2007 2008 2009 2010 MARITAL STATUS Married (64.10%) was the dominant marital status of those seeking bankruptcy protection.* 80 70 60 50 Married 40 Single 30 Divorced 20 Widowed 10 Cohabitating 2006 2007 2008 2009 2010 *This is not surprising when compared against the U.S. Census Bureau data which shows that 50.3% of the adult population is currently married. CAUSES OF FINANCIAL DISTRESS Overextending on Credit remains the top cause of financial distress for those filing bankruptcy.* Overextended on Credit Divorce Unexpected Expenses Birth/Adoption of Child Reduction of Income Death of Family Member Job Loss Retirement illness/Injury Identity Theft 80% 70% 60% 50% 40% 30% 20% 10% 0% 2006 2007 2008 2009 2010 *Clients are allowed to choose more than one cause when describing their situations; therefore, the percentages will equal more than 100%. Sources: http://news.uscourts.gov/bankruptcy-filings-down-14-percent-march-2013 http://www.creditcards.com/credit-card-news/state-us-bankruptcy-filing-statistics-2012-1276.php www.financiallit.org/PDF/2010_Demographics_Report.pdf