STUDY: MOST PEOPLE CONSIDERING BANKRUPTCY BELOW MEDIAN INCOME
April 20, 2006
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Nearly 45 percent of individuals considering bankruptcy reported annual incomes below $20,000 a year, well below most state median income levels, according to recent analysis by the Institute for Financial Literacy. In a white paper titled “First Demographic Analysis of Post-BAPCPA Debtors,” the Institute conducted a survey using 5,000 volunteer participants to provide a demographic analysis of consumers considering bankruptcy since the implementation of BAPCPA.
The analysis also found that bankruptcy debtors over the age of 65 had grown considerably to 8.9 percent from 3.3 percent as reported by the Consumer Bankruptcy Project in a 1999 study. The top five causes of financial distress found by the Institute’s analysis included overextended credit, unexpected expenses, reduction of income, job loss and illness/injury.
Study: Most People Considering Bankruptcy Below Median Income
