People who are considering declaring bankruptcy frequently experience feelings of isolation and helplessness. They might not know anyone who has gone through the process before, so they are left with the impression that they have no one to discuss it with. When you think that you are the only person who has ever been in financial trouble bad enough to think about getting out of those obligations, it is easy to feel very scared about the situation.
People from all walks of life and of all income levels are susceptible to declaring bankruptcy. It does not matter whether a person is married or single; age is not a factor. Others in their golden years and people just starting out in life are equally likely to declare bankruptcy.
Most personal bankruptcies per capita
Each of the federal court districts in the 50 states, the District of Columbia, and the territories is responsible for compiling and reporting these statistics. Because of this, we are able to compare other important information, such as the number of people who submit tax returns to the total population. For example, a report from the Chicago Tribune said that the following states had the most personal bankruptcies per person:
It is impossible to pin down the precise reasons why different parts of the country have such drastically different rates of filing for unemployment benefits. On the other hand, it could have something to do with how the law works in the area, whether or not there are laws that make it easy to collect debts, or how many poor people live in the state.
You may examine further filing data on the website for the United States Courts.
What Circumstances May Cause an Individual to File for Bankruptcy?
People who are contemplating bankruptcy frequently want to know whether their reasons for doing so are usual, logical, or rational. This is because the choice to file for bankruptcy may be a monumental one that can have long-lasting effects, both positive and negative.
According to the findings of a study that was published in the American Journal of Public Health, medical problems were responsible for 66.5 percent of all bankruptcies. This covers not just the loss of revenue or pay from time off work, but also the debt incurred from medical treatment. However, mounting medical bills are not the only factor that leads people to seek bankruptcy protection.
Unemployment and personal problems inside the household, such as a divorce, are two more primary contributors to the decision to file for bankruptcy. A significant number of these aspects involve external factors over which the filer has no influence.
Statistics Relating to the Filing of Bankruptcy Applications
- Consider the following information on declaring bankruptcy:
- Over sixty-four percent of those who file for bankruptcy are married.
- Individuals under the age of 25 made up less than 2% of taxpayers.Approximately 20% of taxpayers are at least 55 years old.The age of 45 is around the middle point.
- Seniors, defined as those 65 and older, account for approximately 8% of taxpayers.People under the age of 34 account for approximately 19% of tax filers.
- Women have a somewhat higher likelihood of filing for bankruptcy than men do: 52 percent vs. 48 percent.
- Sixty percent earn less than thirty thousand dollars per year.A little less than ten percent of filers had an income of $60,000 or more.
- Twenty percent of the people who filed for bankruptcy had a bachelor’s degree or above.
- 29 percent of the population has at least some college education.
- Three-quarters of the population has completed high school.
- Sixteen percent of those who declare bankruptcy do so multiple times.
Everyone, regardless of age or financial status, is susceptible to declaring bankruptcy. In point of fact, it is simple to make the case that there is no such thing as an “average” or “typical” person who files for bankruptcy. However, if we were to construct such a person, they would most likely be a middle-aged married person who has a high school diploma but makes less than $30,000 per year. Even so, studies show that external factors, like a person’s situation, have a much bigger effect on whether or not they file for bankruptcy than demographic factors like age, income, or level of education.