It still will pay to get an education, but perhaps not quite as well as it once did. A new study suggests that the amount of university educated individuals filing for bankruptcy has risen by 20 percent during the last 5 years. The age and salary of filers has also risen.
Increase in graduate diploma bankruptcies
There was an increase from 2006 to 2010 from 11.2 percent to 13.6 percent of those with graduate degrees declaring bankruptcy as reported by the Institute for Financial Literacy report released Tuesday.
Individuals without a university degree make up 70 percent of all bankruptcy filers. There was a higher rate of people filing that had any degree though. This is compared to years before. Individuals possessing only a high school education make up about a third of all filings.
Leslie Linfield, founder of the Institute for Financial Literacy, 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."
Done from 2006 to 2010
There were more than 50,000 debtors in courses for bankruptcy credit counseling or cash management from 2006 to 2010. After the 2005 Bankruptcy Abuse Prevention and Customer Protection Act, this survey was done to follow bankruptcy statistics. President George W. Bush signed the BAPCPA. This was done so those who were declaring bankruptcy could be controlled just a little bit better.
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."
Most filings had 35 and 44 in 2006. 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?"
The study also showed that the quantity of filers generating than $60,000 leaped by 66 percent.
There was a rise from 2.1 percent to 4.5 percent in Asian Americans, which more than doubled. Hispanic filers, according to the report, increased from 6.5 percent to 8.7 percent. African-Americans had a significant decline in numbers, sinking from 15.4 percent in 2006 to 11.3 percent in 2010.
Something is to blame
Linfield blames the massive number of white-collar career losses in the banking and other industries for the lion's share of the statistical boosts. There were reasons listed by the customers in the survey. They blamed over-extended credit, reduction of income and job loss.
There was an increase in the quantity of bankruptcies filed in The United States last year. They went up 1.5 million, the New York Daily News reports.
Increase in graduate diploma bankruptcies
There was an increase from 2006 to 2010 from 11.2 percent to 13.6 percent of those with graduate degrees declaring bankruptcy as reported by the Institute for Financial Literacy report released Tuesday.
Individuals without a university degree make up 70 percent of all bankruptcy filers. There was a higher rate of people filing that had any degree though. This is compared to years before. Individuals possessing only a high school education make up about a third of all filings.
Leslie Linfield, founder of the Institute for Financial Literacy, 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."
Done from 2006 to 2010
There were more than 50,000 debtors in courses for bankruptcy credit counseling or cash management from 2006 to 2010. After the 2005 Bankruptcy Abuse Prevention and Customer Protection Act, this survey was done to follow bankruptcy statistics. President George W. Bush signed the BAPCPA. This was done so those who were declaring bankruptcy could be controlled just a little bit better.
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."
Most filings had 35 and 44 in 2006. 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?"
The study also showed that the quantity of filers generating than $60,000 leaped by 66 percent.
There was a rise from 2.1 percent to 4.5 percent in Asian Americans, which more than doubled. Hispanic filers, according to the report, increased from 6.5 percent to 8.7 percent. African-Americans had a significant decline in numbers, sinking from 15.4 percent in 2006 to 11.3 percent in 2010.
Something is to blame
Linfield blames the massive number of white-collar career losses in the banking and other industries for the lion's share of the statistical boosts. There were reasons listed by the customers in the survey. They blamed over-extended credit, reduction of income and job loss.
There was an increase in the quantity of bankruptcies filed in The United States last year. They went up 1.5 million, the New York Daily News reports.
About the Author:
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