The Honest Debtor. Who is the average bankruptcy filer? Is it normal to file bankruptcy?
Who is the average bankruptcy filer?
A wide variety of people file for bankruptcy protection every year. The high profile businesses and wealthy filers catch a lot of attention, and often create backlash from people who think bankruptcy is unfair to creditors, or to others who they think can manage their finances and less.
However, according to a report by the Institute for Financial Literacy’s Center for Consumer Financial Research, the average 2007 bankruptcy filer was between 35 and 44 years old, white, married, employed and earning less than $30,000 a year, with a high school diploma with some college.
The average filer, according to the federal reserve, typically owed more than one and a half times their annual income in credit card and similar debt. Additionally, states that make it easiest for creditors to garnish wages have the highest numbers of bankruptcy. Most bankruptcy filers have recently lost a job, half have had a serious health problem, and less than 9% have not suffered either a job loss, a health problem, or divorce.
While many, especially creditors, attack bankruptcy as unfair and harmful, a way to get out of obligations owed to them, the facts show that most people who file bankruptcy are honest debtors who have simply suffered one two many hardships. Additionally, more than half of filers have had a friend or relative file bankruptcy, which may mean that more people would file if they were familiar with the option. While bankruptcy is not right for everyone, it is a viable option for many. The best thing to do if you are considering bankruptcy is to speak to a qualified bankruptcy attorney in your area in order to discuss your options.
