Bankruptcy is an interesting topic, and it is very intriguing to learn about some stats associated with bankruptcy. It can help in overcoming some misconceptions about bankruptcy and understanding many different aspects of it. To learn more about bankruptcy and terms related to it, look no further than https://www.recoverylawgroup.com/bankruptcy/.
Case stats of 2020
If you felt alienated or bad about filing for bankruptcy, there were close to 550k other people who filed for bankruptcy during the year 2020. These cases can be split based on the chapter used by the bankruptcy filers. The highest traffic was seen for chapter 7 as over 380k bankruptcy filers chose it over other chapters. In terms of percentage, it means over 70% of the bankruptcy filers filed chapter 7 bankruptcy in the past year 2020.
It is however important to note that this includes both business and individual filings. Even though the total business filings were just under 22k in 2020, experts link it to the impact it could have had on individual bankruptcies as well. As a business going down means employment of at least 5 going down with it as well. The second most popular bankruptcy chapter was Chapter 13 recording about 155k cases during the year 2020. Chapter 7 remained the most dominant chapter even for businesses operating at a percentage of over 56%.
Most stats will give detail of bankruptcies filed per state however, it isn’t a right projection of which state had more bankruptcies due to varied demographics, population, and other factors. To understand states that were impacted most by bankruptcy, it is important to list states based on the number of bankruptcies filed per capita. The list for the top 5 goes as follows-
As seen in the states listed above it is very difficult to put a finger on a particular reason or a pattern of why bankruptcy is high or low in a particular state. However, it is said that 65%+ bankruptcies are due to the medical emergencies. Medical cost is the biggest reason for filing for bankruptcy across the board. Other reasons could be loss of income or domestic issues leading to financial consequences like divorce, etc.
Demography-related stats for bankruptcy
- Close to 65% of bankruptcy filers are married
- The highest bankruptcy filers, almost 78% of them find themselves in the age group between 25 to 55 years.
- Women are marginally ahead of men in filing for bankruptcy with a percentage of 52% vs 48%.
- Most of the bankruptcy filers about 90% of them have an income lower than $60k and about 60% of the bankruptcy filers are said to have income below even $30k annually.
- 64% of the bankruptcy filers lacked even high school education, which means most educated people were able to evade or avoid bankruptcy
- About 16% of bankruptcy filers were repeat filers
These stats can have different inferences for a reader. However, one thing is clear, it is an unfortunate situation, and a lot of people undergo the same and it is a provision to clear the slate and start afresh. To get your doubts about bankruptcy resolved or understand bankruptcy aspects in more detail, dial 888-297-6203 to connect with the best attorneys in Los Angeles & Dallas, TX now.