FindLaw.com Survey Finds One in Eight Americans Have Contemplated Bankruptcy
A new survey by FindLaw.com has found that nearly one in eight Americans (13%) have either filed or considered filing for bankruptcy. The survey found that people between the ages of 35 and 54 are 50% more likely to have considered filing for bankruptcy than people ages 18-34 or 55 and older. People of retirement age (65 and older) are the least likely to have considered filing for bankruptcy (7%).
More than 1.5 million Americans filed for personal bankruptcy last year, according to the National Bankruptcy Research Center. This was the highest level since 2005, which saw a wave of bankruptcy filings just ahead of major bankruptcy law reforms.
Personal bankruptcies are often the result of a major life event, such as loss of a job, a medical emergency, home foreclosure and so on. Bankruptcy laws dictate who is eligible to file for personal bankruptcy, which debts can be wiped out, which debts will remain, and what happens to personal property, including homes.
Stephanie Rahlfs, an attorney and editor at FindLaw.com, says, "Bankruptcy can be a long, complicated and emotionally difficult process. Even after the bankruptcy is completed, it can affect people's lives for many years afterwards. Bankruptcy can be a useful tool for protecting debtors in some cases, but in other cases may not be the best option. People who are contemplating bankruptcy should consult with financial and legal advisers to discuss the pros and cons of bankruptcy, as well as potential alternatives, such as credit counseling and debt management plans."
