It still pays to get a college degree, but perhaps not quite as well as it once did. The quantity of people with a college diploma declaring bankruptcy has increased in the last 5 years by twenty percent, as reported by a new study. The age and income of filers has also increased.
Increase in graduate diploma bankruptcies
The report, released Tuesday by the Institute for Financial Literacy, showed that the amount of bankruptcy filers with a graduate diploma climbed from 11.2 percent in 2006 to 13.6 percent in 2010.
People without a university diploma make up 70 percent of all bankruptcy filers. There was a greater rate of people filing that had any diploma though. This is compared to years before. Those with just a high school education have a higher chance of filing. These individuals make up for about a 3rd of all filings done.
Leslie Linfield, creator of the Institute for Financial Literacy, said:
"There's these mythologies out there that if you go to college and you get a degree, you're going to do financially better. I think this data is starting to erode at this myth. ... The Great Recession has had a dramatic impact on the bankruptcy filings of American consumers across the economic spectrum -- including college-educated, high-income earners."
More than 50,000 surveyed
There were more than 50,000 debtors in courses for bankruptcy credit counseling or cash management from 2006 to 2010. After the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act, this survey was done to follow bankruptcy statistics. The BAPCPA was an act signed into law by President Bush which attempted to tighten the reins on who could and could not file bankruptcy.
Considering ethnicity
"While less educated, low-income individuals continue to represent the typical bankruptcy filer," Linfield said, "this report underscores a sophisticated evolution of the profile of the American debtor that now extends to disparate age, income and ethnic groups."
In 2006, those between 35 and 44 accounted for most of the filings. By 2010 that demographic had shifted to people between the ages of 45 and 54. Linfield finds them particularly at risk. "At 54," she asked, "do they really have enough time in front of them to start over?"
The study also showed that the amount of filers generating than $60,000 leaped by 66 percent.
There was a rise from 2.1 percent to 4.5 percent in Asian Americans, which more than doubled. Hispanic filers, according to the report, increased from 6.5 percent to 8.7 percent. There was a decrease from 2006 to 2010 in the number of African-Americans that filed as it went from 15.4 percent to 11.3 percent.
Something is to blame
Linfield explains that there is a reason behind this large increase in statistics. It is due to the career loss. There were reasons listed by the consumers in the survey. They blamed over-extended credit, reduction of income and job loss.
The New York Daily News explained that the quantity of bankruptcies in The United States went up 1.5 million.
Increase in graduate diploma bankruptcies
The report, released Tuesday by the Institute for Financial Literacy, showed that the amount of bankruptcy filers with a graduate diploma climbed from 11.2 percent in 2006 to 13.6 percent in 2010.
People without a university diploma make up 70 percent of all bankruptcy filers. There was a greater rate of people filing that had any diploma though. This is compared to years before. Those with just a high school education have a higher chance of filing. These individuals make up for about a 3rd of all filings done.
Leslie Linfield, creator of the Institute for Financial Literacy, said:
"There's these mythologies out there that if you go to college and you get a degree, you're going to do financially better. I think this data is starting to erode at this myth. ... The Great Recession has had a dramatic impact on the bankruptcy filings of American consumers across the economic spectrum -- including college-educated, high-income earners."
More than 50,000 surveyed
There were more than 50,000 debtors in courses for bankruptcy credit counseling or cash management from 2006 to 2010. After the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act, this survey was done to follow bankruptcy statistics. The BAPCPA was an act signed into law by President Bush which attempted to tighten the reins on who could and could not file bankruptcy.
Considering ethnicity
"While less educated, low-income individuals continue to represent the typical bankruptcy filer," Linfield said, "this report underscores a sophisticated evolution of the profile of the American debtor that now extends to disparate age, income and ethnic groups."
In 2006, those between 35 and 44 accounted for most of the filings. By 2010 that demographic had shifted to people between the ages of 45 and 54. Linfield finds them particularly at risk. "At 54," she asked, "do they really have enough time in front of them to start over?"
The study also showed that the amount of filers generating than $60,000 leaped by 66 percent.
There was a rise from 2.1 percent to 4.5 percent in Asian Americans, which more than doubled. Hispanic filers, according to the report, increased from 6.5 percent to 8.7 percent. There was a decrease from 2006 to 2010 in the number of African-Americans that filed as it went from 15.4 percent to 11.3 percent.
Something is to blame
Linfield explains that there is a reason behind this large increase in statistics. It is due to the career loss. There were reasons listed by the consumers in the survey. They blamed over-extended credit, reduction of income and job loss.
The New York Daily News explained that the quantity of bankruptcies in The United States went up 1.5 million.
About the Author:
Are you in the midst of a debtor problem and looking for somewhere to turn? Let the legal staff at SouthwellORourke.com help find you the best bankruptcy attorney Walla Walla WA around.
No comments:
Post a Comment