It still pays to get a college degree, but perhaps not quite as much as it once did. A recent study shows that 20 percent more university knowledgeable people filed for bankruptcy than they did five years ago. The study also saw rises in the income and ages of filers.
College-educated, higher-income earners
There was a rise from 2006 to 2010 from 11.2 percent to 13.6 percent of those with graduate degrees declaring bankruptcy according to the Institute for Financial Literacy report released Tues.
About 70 percent of filers are individuals that do not have a university degree. People with all degrees were filing more often than they were the year before. Those with just a high school education have a higher chance of filing. These people make up for about a 3rd of all filings done.
The Institute for Financial Literacy creator, Leslie Linfield, 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."
Not a small survey
There were more than 50,000 debtors in courses for bankruptcy credit counseling or money management from 2006 to 2010. After the 2005 Bankruptcy Abuse Prevention and Customer Protection Act, this survey was done to follow bankruptcy statistics. The BAPCPA was an act signed into law by President George W. Bush which attempted to tighten the reins on who could and could not file bankruptcy.
What was being reviewed?
"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, the filings were all around the same age. They were around 35 and 44. By 2010 that demographic had shifted to individuals 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?"
About 66 percent of filers made less than $60,000 a year.
There was a rise from 2.1 percent to 4.5 percent in Asian Americans, which more than doubled. There was also an increase from 6.5 percent to 8.7 percent in Hispanic filers. A decrease from 15.4 percent in 2006 to 2010's 11.3 percent was shown for African-Americans. This shows a massive decline in numbers.
Career loss is the cause
There has been a ton of job loss, which has brought on the majority of the difficulties to take place, as reported by Linfield. The reasons cited by customers were job loss, reduction of income and over-extended credit.
There was a rise in the amount of bankruptcies filed in The United States last year. They went up 1.5 million, the New York Daily News reports.
College-educated, higher-income earners
There was a rise from 2006 to 2010 from 11.2 percent to 13.6 percent of those with graduate degrees declaring bankruptcy according to the Institute for Financial Literacy report released Tues.
About 70 percent of filers are individuals that do not have a university degree. People with all degrees were filing more often than they were the year before. Those with just a high school education have a higher chance of filing. These people make up for about a 3rd of all filings done.
The Institute for Financial Literacy creator, Leslie Linfield, 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."
Not a small survey
There were more than 50,000 debtors in courses for bankruptcy credit counseling or money management from 2006 to 2010. After the 2005 Bankruptcy Abuse Prevention and Customer Protection Act, this survey was done to follow bankruptcy statistics. The BAPCPA was an act signed into law by President George W. Bush which attempted to tighten the reins on who could and could not file bankruptcy.
What was being reviewed?
"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, the filings were all around the same age. They were around 35 and 44. By 2010 that demographic had shifted to individuals 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?"
About 66 percent of filers made less than $60,000 a year.
There was a rise from 2.1 percent to 4.5 percent in Asian Americans, which more than doubled. There was also an increase from 6.5 percent to 8.7 percent in Hispanic filers. A decrease from 15.4 percent in 2006 to 2010's 11.3 percent was shown for African-Americans. This shows a massive decline in numbers.
Career loss is the cause
There has been a ton of job loss, which has brought on the majority of the difficulties to take place, as reported by Linfield. The reasons cited by customers were job loss, reduction of income and over-extended credit.
There was a rise in the amount of bankruptcies filed in The United States last year. They went up 1.5 million, the New York Daily News reports.
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