In a decade, bankruptcy was an abstract concept for many Americans. It was reserved for extreme crises. In the current economic climate, bankruptcy is a threat to ordinary people worldwide.
We document the unraveling of the landscape by following a middle manager, whose business buckles when under pressure. Personal bankruptcies are on the rise 13% Business Chapter 11’s increasing 30% These statistics reveal systemic cracks that have been present over the last year. This article reveals the underlying forces behind the data, from the easy money after the recession to the pandemic’s lasting financial carnage. It chronicles how the exception has become the rule, with neighbors seeking legal refuge along with corporate titans.
Key Bankruptcy Statistic
- Personal debt is alarming 97% of bankruptcy cases filed are dismissed In America
- You can also find out more about the following: Unpaid medical bills One of the main reasons people go bankrupt is because they have a debt.
- The number of bankruptcy cases filed by the same group Accounts for 8%.
- Spending recklessly is the cause for At least 5% of cases Bankruptcy is a serious matter.
- The majority of the population is made up of people earning less than $30,000. 60% of bankrupt cases filed are not successful.
- The records show that Men are more likely than women to file for bankruptcy Women are more than twice as likely to be pregnant as men.
- Just like 20% of Bachelor’s Degree Holders More than a hundred bankruptcy cases were filed in 2010.
- Corporate The number of Americans filing for bankruptcy has risen dramatically In nearly all of 2020’s quarters.
- It was a surprise to learn that 470 companies declare bankruptcy From January 2020 to September.
- 2019 has been a very exciting year. Over 600 businesses declared bankrupt The New York Times
2023 Private Bankruptcy Statistics
This section will explain how to use this section. Personal bankruptcy is a complex issue.. These statistics and numbers will help you understand bankruptcy on this level.
1. In America, personal debt accounts for 97% of all bankruptcy cases.
It is clear who files the most bankruptcies. It is alarming to see that Most cases of bankruptcy that reach the courts are personal.. These cases include student loans, auto loans, credit cards and mortgages. The total number of personal bankruptcy cases filed in 2019 was 752,160. Personal debt accounted for 97% of these cases. The remaining cases, totaling 22,780, were filed by corporations and accounted for just 3%. Most people who file for bankruptcy are not wealthy, nor do they have a safe investment to fall back on during their low moments.
2. Unpaid medical bills are a major reason for bankruptcy.
Medical expenses are one of the most common reasons for people to get into debt. If a person loses his or her job, health issues can put a strain on finances. NerdWallet reports that many Americans struggle with paying their medical bills. It claims that this will cause 1.7 million Americans to seek bankruptcy protection in the courts. In a survey, one in five respondents had been contacted by collagen agencies to pay their debts. This is alarming as you can imagine the lengths to which people will go. Declaring bankruptcy to pay medical bills.
3. The number of bankruptcy cases filed by the same group of people accounts for 8%.
Statistics show that 8 percent of people who file for bankruptcy have already done so. Surprisingly 16% of all bankruptcy cases are filed by people who have previously been bankrupt. Experts see repeated bankruptcy filings by companies as an abuse of the law. There has been little progress in preventing bankruptcy abuse. This is due to the fact that it’s hard to say when or why someone should declare bankruptcy. 8% of those who resort to bankruptcy do so because they see it as their last option. How to start fresh and clear your debts.
4. Bankruptcy is caused by reckless spending in not less than 5% of cases.
Surprisingly, only 5% of people who have gone bankrupt due to reckless spending. Many cases of bankruptcy are caused by financial hardships. These are mostly low-income earners, who may be facing health issues or even losing their job. This situation can lead to the person becoming indebted and crippling their finances until they reach a point of bankruptcy. Declaring bankruptcy in such cases will ease the burden.
5. 60% of bankrupt cases are filed by people earning less than $30,000.
In 2011, an analysis showed that the number filed of bankruptcies had decreased from four years earlier. This was a record achievement as it was 66% four year ago. At the same, There was an increase The number of bankruptcies filed annually by people earning over $60,000. This was a significant increase from the previous 5.5% to 9.2%. The events of the time demonstrated that no one is immune to financial problems.
6. Men are more likely than women to file for bankruptcy, according to records.
The percentage of women and men who file for bankruptcy is almost the same. Women were slightly lower at 48%, compared to the 52% of men. Private bankruptcies involving married couples in the same time period accounted for 64%.. The records include those of those who pay their taxes jointly. The widowed accounted for 3%, the singles 17% and the divorced 15%.
7. Only 20% of those with a Bachelor’s degree or more filed bankruptcy in 2010.
A study conducted in 2011 revealed that people with good education levels are more likely to fall into bankruptcy. Many graduates struggle to pay back student loans. Nearly 36% of bankruptcy cases were filed by people with only a high-school diploma. Over time, 29% of cases were filed by those with a college education.
American Corporate Bankruptcy Statistics
8. Corporate Bankruptcy in America rose dramatically for nearly all of 2020’s quarters.
In 2020, the bankruptcy rate of corporations was a concern for many experts. In the first quarter 2020, corporations filed bankruptcy cases in as high as 33%. The average for the entire period was 18%. In the same quarter, large cases of bankruptcy were 6% for private companies 25% of cases were filed. In the third quarter, 49% filed for bankruptcy. Mega bankruptcy in the third quarter increased to 15%. During this period, 26% of cases were filed by public companies while 23% were filed by private companies.
9. It was a shock to many, as 470 companies declared bankruptcy from January 2020 until September.
This was a very unexpected event, as it had never happened since 2010. After the 2020 curtain closed, 500 companies went bankrupt. It was disappointing to see that 30 more companies had been added to an already high number. Advanzeon Solutions filed a Chapter 11 bankruptcy case over the period along with KB Holdings and Providence Hospital. These companies, along with many others, totaling over 500, declared bankruptcy.
10. The New York Times declared over 600 businesses bankrupt in 2019.
2019 will be a year that continues to ring through the corporate worlds of Americans. The year was one of heavy weights. New York bankruptcy cases: 636 bankruptcy cases. California did not miss out, ranking second with 577 bankruptcy cases. Texas followed with 530 cases. Illinois was next with 486 cases filed, and in Pennsylvania ranked fifth with 483 bankruptcies.
2023 Bankruptcy Stats
11. Bankruptcy rose 10% by the end of June 2023.
The number of personal and corporate bankruptcy filings has increased by 10% in the last 12 months. The number of cases is now 418,724. This is alarming when you consider the 380,634 cases filed in 2022. The number of business bankruptcy filings increased from 12,748 on the last day in June 2023 to a peak of 15,724. At the same time, personal bankruptcy increased to 403,000 from 367,886 at 2022.
12. Personal Filings fell by 23.6% in 2021.
Personal bankruptcy reached a new low in 2021, falling from 522,808 down to 399,269, a remarkable drop. Many saw this as a way to revive the economy. The courts had less cases to deal in the year.. Many attributed the sharp increase to the bonuses given to those without jobs during pandemic.
13. Alaska had the least number of bankruptcy cases filed in 2021.
Alaska had only 107 bankruptcy cases filed in 2021. California reached a record of 18,817 bankruptcy cases during the same time period. Other states such as Montana, South Dakota and New Hampshire, North Dakota and Maine have been able to keep the number of cases filed under 300 all the way through 2021. California was not the only state to follow suit with more than 6,00 bankruptcy filings.Florida, Ohio and Indiana are just a few of the states that you can choose from.
14. In the United States, 413 616 cases were filed in a single year.
In 2021, the number of bankruptcy cases filed dropped. The number of bankruptcy cases dropped from 544,463 to 413,616 in 2021. It was a 24% drop from the level at the end 2020. Since the pandemic crisis in 2019 and 2020, bankruptcy has been falling.. The number of business filings also fell by 33.7%. In 2020, it was 21,655, but by the end of 2021, it had dropped to 14,347. One can only pray that this decline in bankruptcy will continue over the long term.
15. The number of corporate fillings increased by 32% in 2022.
Government relief programs helped to reduce bankruptcy issues from 2022 onwards. This cutoff left a gap for American businesses in 2022. In the first two quarters of 2022, the number of bankruptcy cases filed increased.. By the end of April, 2022, the number of corporate bankruptcy cases had risen to 250. This scenario is likely to continue as the economy continues to decline.
16. The debt rate will increase to 15% by 2022.
Experts have predicted that In 2022, the bankruptcy rate will likely increase by 15%. The United States implemented some measures to counter this.
Conclusion
Not only in the United States, but also worldwide, bankruptcy is a topic that is addressed every year. We can learn a lot from the United States. The government plays a big role in combating bankruptcy. The idea that bankruptcy is the last resort for anyone is not true. Anyone who can pay off their debts is far above going bankrupt. It would be wrong to forget that accidents, ill health or even accidents can lead to bankruptcy. One can only ask the penitent question, given all these factors: Can I pay my debt in 5 years? If not, then declaring bankruptcy is not a bad decision.
