Copyright May 2007, Institute for Financial Literacy

Who Went Bankrupt In 2006? 

A Demographic Analysis of American Debtors FINDINGS AND EXECUTIVE SUMMARY
The average American who is in financial distress and seeking credit counseling
and financial education is:

Caucasian, married, employed, between the age of 35-44 years old, has at least a high school education if not some college, and makes no more than $30,000 per year.

The primary reasons for their financial distress include: Overextended on credit, reduction of income or job loss, illness or injury and unexpected expenses.

Areas of growing concern include:

Bankruptcy filing rates for senior citizens Identity Theft’s role in bankruptcy filings Women filing bankruptcy at higher rates then men What role education plays in financial management

RECOMMENDATIONS

Research should be conducted to study the underlying causes for senior citizens
filing bankruptcy; policymakers should look to implement potential solutions to
assist a population which may not otherwise be able to afford a true “economic
fresh start” due to their age.

Policymakers, law enforcement, businesses and financial educators must continue
to work in their respective fields to protect and educate consumers on the issue of
Identity Theft.

Research should be conducted to study why women are filing bankruptcy at
greater rates than their male counterparts; policymakers should look to implement
potential solutions.