Bankruptcy and Career Statistics
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As the following statistics reveal, financial difficulties can cause people to take desperate measures in desperate times, including getting payday loans and tapping into retirement accounts. And in the current economic climate, more and more people may unfortunately feel such desperation.
If your financial problems have you thinking about doing something now that could jeopardize your future, remember that you may have better options. You've already taken the first step toward taking control of your finances by simply visiting Clear Bankruptcy.
Connect with a local bankruptcy lawyer who can explain how filing personal bankruptcy may provide you with the financial clarity you need.
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Bankruptcy and Employment
- In 2008, nearly two-thirds of personal bankruptcy filings were Chapter 7 bankruptcies. Chapter 7 is most often reserved for filers with little or irregular income.
- According to the Department of Justice, 19% of "no-asset" Chapter 7 bankruptcy filers are unemployed, and 30% have been in their current employment for less than one year.
Payday Loans‒The Financial Crutch
Many people who are unemployed, underemployed, or simply having trouble make ends meet turn to short-term loans such as pay-day loans. These loans typically have a high interest rate, along with fees, and eventually put debtors further in debt:
- According to the Center for Responsible Lending (CRL), 99% of payday loans go to repeat borrowers.
- The CRL also reports that the average payday borrower is flipped eight times by a single lender.
- According to a 2003 CRL report, 91% of all payday loans are given to people with five or more payday loans per year.
- That report also indicated that 66% of borrowers received five or more payday loans per year while 33% of borrowers received 12 or more payday loans per year.
- The 2003 CRL report found that the average payday loan borrower gets between 8 and 13 payday loans per year, and that five million Americans fall into such traps each year.
Money and Retirement
How important is it for you to take control of your current financial problems before they affect how you save money for your retirement? Check out these statistics:
- A financial analyst detailed in a recent CNNMoney.com story how 49% of people in their 60s today have at least one parent who is still alive. In comparison, the story reported that only four to seven percent of people in their 60s had a living parent at the beginning of the 20th Century.
- According to a recent survey by Brightwork Partners of 5,400 adults (as detailed on DowJones' MarketWatch.com), about one in five workers age 45 and older already provide financial support for a parent.
- As detailed once again on DowJones' MarketWatch.com, 42% of those people supporting a parent indicated in the survey that they'll have to work for pay in retirement. Additionally, 26% of these people supporting their parents said they will have to delay their own retirement.
- According to the MarketWatch.com story on this survey, the portion of retirees who returned to the workforce increased by 6% in 2006 as compared to the year before. Specifically, 35% of retirees surveyed returned to the job workforce as compared to the 29% of retirees who indicated taking similar action in the 2005 survey.
Money and Your Home:
- According to a Bank of America report as detailed in a J.G. Wentworth press release on PrimeNewswire.com, an estimated $360 billion worth of adjustable rate mortgages reset to higher interest rates in 2008.
- According to a recent CNNMoney.com story, the number of homes that were actually lost to foreclosure increased by 51 percent in 2007 as compared to the year before: 405,000 homes in 2007 as compared to 268,532 homes in 2006.
- RealtyTrac.com calculations apparently found that foreclosures increased by 97 percent in December 2007 as compared to the same month the year before.