Bankruptcy Study Reveals Interesting Statistics
During 2007, women in the United States were filing bankruptcy at a disproportionately higher rate than men, according to research by a non-profit financial counseling and education organization based in Portland, Maine.
The Institute for Financial Literacy released a report based on its research of bankruptcy data indicating that not only were American women filing bankruptcy at a higher rate compared to their representation in the total population than American men during 2007, but that these statistics represent a growing trend that the organization says has been noted since 2005.
Specific information including gender, age, race and other factors was gathered by the Institute for Financial Literacy from more than 36,000 American consumers around the country who were filing bankruptcy and had enrolled in the pre-bankruptcy credit counseling that is now mandatory under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) before filing bankruptcy.
The research by the Institute for Financial Literacy is one of the largest studies of its kind related to the demographic data of people who are filing bankruptcy in the United States.
Who Is Filing Bankruptcy?
In addition to showing the trend of more women than men filing bankruptcy the study also found that the average consumer who is in financial distress and seeking pre-bankruptcy credit counseling and financial literacy education is Caucasian, married, currently working, has a minimum of a high school diploma and in many cases some college education, between the ages of 35 and 44, and earns less than $30,000 per year.
Why Consumers Are Filing Bankruptcy
The Institute for Financial Literacy report also showed that the main reasons consumers list for their financial distress are too much consumer debt and overextended credit, illness or injury and a reduction of income or loss of a job.
The research also indicated that identity theft, education level and the rising rate of elderly people filing bankruptcy are also growing areas of concern.
