Obtaining a college diploma could not be quite the guarantee to a good paying job that it used to be. A brand new study suggests that the number of university skilled individuals declaring bankruptcy has increased by twenty percent over the last 5 years. The research also saw rises in the income and ages of filers.
No guarantee you will not fail with a graduate degree
The report, released Tues by the Institute for Financial Literacy, showed that the number of bankruptcy filers with a graduate diploma climbed from 11.2 percent in 2006 to 13.6 percent last year.
There are many people without university degrees declaring bankruptcy still. This is the lawsuit for about 70 percent of filers. There was a greater rate of individuals filing that had any diploma though. This is compared to years before. Those with just a high school education have a higher chance of filing. These individuals make up for about a third of all filings done.
Leslie Linfield is the Institute for Financial Literacy founder. She 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."
Many people involved
The study was conducted from 2006 to 2010, involving more than 50,000 debtors in bankruptcy credit counseling or cash management courses. Bankruptcy statistics were being followed. This was to see the impact of the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act. The BAPCPA was an act signed into law by President 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."
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 number of filers making more than $60,000 leaped by 66 percent.
Asian Americans, whose numbers more than doubled, climbed from 2.1 percent to 4.5 percent. Hispanic filers, as reported by 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 last year.
Job loss is the trigger
Linfield blames the enormous number of white-collar career losses in the banking and other industries for the lion's share of the statistical boosts. The reasons cited by customers were job loss, reduction of income and over-extended credit.
Last year, the amount of personal bankruptcies filed in America rose by 1.5 million, as reported by the New York Daily News.
No guarantee you will not fail with a graduate degree
The report, released Tues by the Institute for Financial Literacy, showed that the number of bankruptcy filers with a graduate diploma climbed from 11.2 percent in 2006 to 13.6 percent last year.
There are many people without university degrees declaring bankruptcy still. This is the lawsuit for about 70 percent of filers. There was a greater rate of individuals filing that had any diploma though. This is compared to years before. Those with just a high school education have a higher chance of filing. These individuals make up for about a third of all filings done.
Leslie Linfield is the Institute for Financial Literacy founder. She 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."
Many people involved
The study was conducted from 2006 to 2010, involving more than 50,000 debtors in bankruptcy credit counseling or cash management courses. Bankruptcy statistics were being followed. This was to see the impact of the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act. The BAPCPA was an act signed into law by President 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."
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 number of filers making more than $60,000 leaped by 66 percent.
Asian Americans, whose numbers more than doubled, climbed from 2.1 percent to 4.5 percent. Hispanic filers, as reported by 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 last year.
Job loss is the trigger
Linfield blames the enormous number of white-collar career losses in the banking and other industries for the lion's share of the statistical boosts. The reasons cited by customers were job loss, reduction of income and over-extended credit.
Last year, the amount of personal bankruptcies filed in America rose by 1.5 million, as reported by the New York Daily News.
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