It still will pay to get an education, but maybe not quite as well as it once did. A recent study shows that twenty percent more college educated individuals filed for bankruptcy than they did 5 years back. The study also saw rises in the earnings and ages of filers.
No guarantee you will not fail with a graduate diploma
Tues, the Institute for Financial Literacy report was released. It showed, from 2006 to 2010, that there was a rise in the quantity of bankruptcies filed by those with graduate degrees from 11.2 percent to 13.6 percent.
About 70 percent of filers are individuals that don't have a university degree. There was a higher rate of individuals filing that had any degree though. This is compared to years before. Those with just a high school education have a greater chance of filing. These individuals make up for about a third of all filings done.
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."
Not a small study
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 Consumer Protection Act, this study was done to follow bankruptcy statistics. The BAPCPA was an act signed into law by President George W. Bush which attempted to tighten the reins on who could and could not file bankruptcy.
All factors considered
"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?"
About 66 percent of filers made less than $60,000 a year.
There was an increase from 2.1 percent to 4.5 percent in Asian Americans, which more than doubled. There was also a rise from 6.5 percent to 8.7 percent in Hispanic filers. There was a decrease from 2006 to 2010 in the amount of African-Americans that filed as it went from 15.4 percent to 11.3 percent.
Something is to blame
Linfield blames the enormous number of white-collar job losses in the banking and other industries for the lion's share of the statistical boosts. Consumers responding to the survey cited over-extended credit, job loss and reduction of income more than any of other reasons as the causes of their financial turmoil.
The New York Daily News explained that the amount of bankruptcies in The United States went up 1.5 million.
No guarantee you will not fail with a graduate diploma
Tues, the Institute for Financial Literacy report was released. It showed, from 2006 to 2010, that there was a rise in the quantity of bankruptcies filed by those with graduate degrees from 11.2 percent to 13.6 percent.
About 70 percent of filers are individuals that don't have a university degree. There was a higher rate of individuals filing that had any degree though. This is compared to years before. Those with just a high school education have a greater chance of filing. These individuals make up for about a third of all filings done.
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."
Not a small study
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 Consumer Protection Act, this study was done to follow bankruptcy statistics. The BAPCPA was an act signed into law by President George W. Bush which attempted to tighten the reins on who could and could not file bankruptcy.
All factors considered
"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?"
About 66 percent of filers made less than $60,000 a year.
There was an increase from 2.1 percent to 4.5 percent in Asian Americans, which more than doubled. There was also a rise from 6.5 percent to 8.7 percent in Hispanic filers. There was a decrease from 2006 to 2010 in the amount of African-Americans that filed as it went from 15.4 percent to 11.3 percent.
Something is to blame
Linfield blames the enormous number of white-collar job losses in the banking and other industries for the lion's share of the statistical boosts. Consumers responding to the survey cited over-extended credit, job loss and reduction of income more than any of other reasons as the causes of their financial turmoil.
The New York Daily News explained that the amount of bankruptcies in The United States went up 1.5 million.
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