The Institute for Financial Literacy (IFL), a nonprofit organization dedicated to improving financial literacy across the nation, released the results of a five-year study on bankruptcy filings. The organization examined bankruptcy trends since the establishment of the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) in 2005 and gathered this data into its annual report.
Findings included in the 2010 Annual Consumer Bankruptcy Demographics Report include:
- A 20 percent increase in bankruptcy filings by individuals with a college degree
- A 19 percent increase in filings by Americans aged 45 and older
- A 66 percent increase in bankruptcy filings by individuals earning incomes over $60,000
- A 21 percent increase in filings by unemployed individuals
- A 12 percent increase in filings by married couples
The across-the-board increases can be tied into the Great Recession with 24 percent of filers citing a reduction of income as the primary reason for their bankruptcy. An additional 21 percent cite job loss as the main cause of their bankruptcy.
Unfortunately, having a college degree is no longer the safety net that it once was. The IFL not only saw a 20 percent increase of bankruptcy filings among individuals with a college degree, there was also an increase among individuals with an advanced degree.
Learn more about who is filing bankruptcy in our nation and why by downloading the free report from the IFL website: 2010 Annual Consumer Bankruptcy Demographics Report.