Who Files Bankruptcy?
Filing bankruptcy may be more common than you think. In 2010, more than 1 million people filed for bankruptcy protection.
Who are these people? The most recent statistics from the Institute for Financial Literacy may reveal some surprising trends:
- 73% of filers have a job or are self-employed
- 27% make more than $30,000 a year
- 94% graduated from high school
- 30% are 35-44 years old
In other words, most bankruptcy filers are typical Americans. The process is available in all 50 states, and open to everyone.
Even the Rich File Bankruptcy
While it’s no secret that even celebrities and athletes file bankruptcy, filing is still common among people with high paying jobs and advanced college degrees. In fact:
- 5% of filers have a graduate college degree
- 14% of filers make $50,000 or more a year
Why do they file? Everyone has their reasons, but Donald Trump is a good example. Companies run by The Donald, a symbol of business smarts, have filed bankruptcy many times. For him, it’s just another tool to help manage finances, clear debt and keep moving forward.
Reasons for Filing Bankruptcy
Every bankruptcy case is different, and everyone has their own reasons for wanting to file, but studies show that some common reasons include:
- Medical bills
- Fighting foreclosure
- Loss of job
- Creditor harassment
- Credit card bills
Ultimately, there may be one or many reasons to decide to file bankruptcy. It’s a tool that may help you get your finances back under control.
If you're struggling with debt and looking to find financial freedom, bankruptcy may be an option for you. To learn more about how bankruptcy could help and what to expect during the bankruptcy process, connect with a local bankruptcy attorney today for a free, no-obligation consultation.