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Who files for bankruptcy?

On Behalf of | Sep 20, 2021 | Bankruptcy

Although debt can be an isolating experience, it is one that many Americans go through. Every year, thousands of individuals end up filing for either Chapter 7 or Chapter 13 bankruptcies. Because there are still some lingering stigmas surrounding bankruptcy, it can be helpful to know you are not alone.

If you ask, “Who files for bankruptcy?” the answer is everyone. Regardless of your age, profession, background or income level, there is a chance that you may end up facing debts that you cannot repay. The truth is Americans from every walk of life have debts. No matter who you are, you are not immune to unexpected financial difficulties. Consider these statistics.

All ages

While there have been frequency variances across different decades, American adults from the youngest generations to the oldest all file for bankruptcy. In general, the number of filers under the age of 25 has decreased in recent years while the number of older filers has increased. The median filer is now between 38 and 45 years old.

All education levels

According to debt research, a significant portion of bankruptcy filers holds bachelor’s degrees or higher. Meanwhile, other significant portions of filers have a high school education or some college education. This data means that bankruptcies can impact individuals from any background, regardless of educational attainment.

All income levels

Similarly, debt affects all income levels. While lower-income earners are more likely to face unmanageable debts, an increasing number of high-income earners are turning to bankruptcy for financial relief. When it comes to expensive emergencies with outrageous hospital bills, the top reason for U.S. bankruptcies, even those with comfortable savings can feel the financial impact.

Although you may feel alone, you are not. At the end of the day, debt touches most Americans’ lives.