How Many People File For Bankruptcy Each Year?
Nationwide, the number of bankruptcy cases are high. In 2015, there were a total of 844,495 bankruptcy cases filed in US bankruptcy courts. The vast majority of these cases are non-business or individual bankruptcies. Let’s take a closer look at the numbers, including which states have higher rates of bankruptcy.
Most Cases Are Individual
In 2015, there were a total of 819,760 non-business/individual bankruptcies filed. In comparison, the number of business bankruptcies was only 24,735.
It’s not surprising that highly populated areas have more bankruptcy cases. For example, in New York State, there were nearly 29,000 non-business bankruptcy cases filed in 2015. And in 2015, California registered over 80,000 non-business bankruptcy filings.
In 2015 the states with the lowest number of total bankruptcies were North Dakota and Vermont with 583 and 669 cases respectively.
Maryland Bankruptcy Numbers
In Maryland, there were a total of 18,247 bankruptcy cases filed in 2015. Of that total, 17,796 were non-business/personal cases: 12,376 were Chapter 7, 51 were Chapter 11, and 5,369 were Chapter 13 filings.
Bankruptcy Rates By State
So far, we’ve only looked at the total number of bankruptcies. We can also measure bankruptcy rates by state. Here are the top ten states based on bankruptcy rates per 100,000 people:
- Tennessee 610
- Georgia 524
- Alabama 519
- Illinois 470
- Utah 468
- Indiana 450
- Nevada 403
- Kentucky 391
- Mississippi 374
- Arkansas 374
In comparison, Maryland ranks at number 15 with 347 bankruptcies per 100,000 population. The states with the lowest rates are Alaska and North Dakota with 56 and 94 per 100,000 respectively.
Who Files For Bankruptcy?
Financial crisis can happen to anyone. Unexpected expenses, such as medical bills, lead to debt accumulation. Other causes can be sudden job loss or unforeseen financial burdens. Divorce or a death in the family are also common reasons people file for bankruptcy. Over 90% of people filing for bankruptcy have experienced a medical problem, a divorce, or loss of employment. When credit problems get too big to handle, bankruptcy is a viable option for many. The average age of someone filing for bankruptcy in the US is 38 years. Couples currently file 44% of bankruptcy cases while women file 30% alone, and men 26%.
What Should You Do?
If you are having credit problems, you can do something about it. It’s important to consider all your options. Bankruptcy is a valid and legal process that helps people recover from overwhelming debt.
Facing a credit crisis? Bankruptcy might be your best choice. Contact Us today.
Bankruptcy data provided by the United States Courts and WorldAtlas.