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Study: Bankruptcy rises among those with college degrees and jobs Atlanta, GA

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Study: Bankruptcy rises among those with college degrees and jobs

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The recession has hit most sectors of society extremely hard, and that fact is showing up in the profiles of those filing for bankruptcy, according to a recent study by the nonprofit Institute for Financial Literacy. While the unemployed and those with less education continue to be among the most likely to have serious financial problems, the number of bankruptcy filings among people with college degrees and those with relatively high-paying jobs has risen dramatically. The study also found that being married, which has traditionally been one factor that keeps people financially stable, no longer has the protective effect it once did.

The study analyzed survey responses from 50,000 individuals who filed for bankruptcy in the past five years. Of those bankruptcy filers, 64 percent were married, an increase of more than 60 percent over the average of married filers in 2006.

Earning a bachelor’s degree is typically associated with greater prospects for financial success, but 13.58 percent of the bankruptcy filers had college degrees — a 21 percent increase since before the recession. Filings by people making $60,000 a year or more were up by 67 percent.

At the highest risk for bankruptcy were those who had attended college but had not completed a degree. The combination of student loan debt and unemployment or underemployment was devastating, and people in this group made up 28.7 percent of all bankruptcy filings last year.

The largest percentage of filers were still those earning less than $20,000 per year and people with a high school education or less. This recession has changed the proportions, however, with higher-income earners creeping into the bankruptcy system in greater numbers. Because of increases in college educated filers, the proportion of filers with high school diplomas or less dropped by 8.6 percent.

“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,” said the Institute for Financial Literacy’s executive director.

“While less educated, low income individuals continue to represent the typical bankruptcy filer, this report underscores sophisticated evolution of the profile of the American debtor that now extends to disparate age, income and ethnic groups.”

Source: The Wall Street Journal’s Bankruptcy Beat, “Marriage, College, Job Won’t Ward Off Bankruptcy,” Eric Morath, Sept. 13, 2011

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Jack L.

They did an excellent job with my case. Jamie took the time to really listen and understand things. She delved into the details and was extremely knowledgeable and non judgmental. Very professional and they know what they are doing. Would definitely recommend!

All C.

Mr. Gingold was recommended by an attorney I had worked with previously. I met with Ira Gingold to discuss credit issues. He went over each specific issue thoroughly. He advised me of the potential outcomes. He did all this in one meeting for a very reasonable price. When we finished I was confident in moving forward with a resolution. He definitely wants to help people take the appropriate course of action for their circumstance.

Karen B.

Dear Mr Gingold, There are so many reasons to be thankful for all you have done and will do. Anyone who has ever had unfavorable experiences with an attorney or the legal system will feel the trepidation that I experienced once I realized that my situation seemed hopeless. It was by chance and happily good luck that I decided to put my future and sanity into your hands. I was mortified at having to deal with my debts by claiming bankruptcy. I remember in our first meeting how you assured me that I was not alone and should not feel ashamed. And, anyone in this position obviously does not have money to spare and you were clear about all the costs and allowing me to pay according to my own ability to do so. You advised me in all aspects of the law, but also, you were at each meeting incredibly supportive and complementary of my personal and professional plans. Anyone else in this situation should feel blessed to have access to your expertise and support.

Lyla B.

I thought the process of filing bankruptcy was going to be a difficult one. However, Gingold & Gingold treated me with respect and dignity from the moment I walked through their door. I had the pleasure of working with Jamie. She is very responsive, professional, and knowledgeable. She took the time and listened to my every concern and handled each and every one of them to my satisfaction. My experience with filing bankruptcy under Gingold & Gingold's representation exceeded my expectations in a major way. They gave me such a peace of mind. I am very pleased with my decision of going with Gingold & Gingold to represent me when I filed Chapter 13 bankruptcy.

Julie T.

Wow! I am finally out of debt and can say that I am debt free after completing my chapter 7 bankruptcy case with Gingold and Gingold. Mr dangled was very knowledgeable and direct with regard to my debt situation. there were no surprises and the case went as I was advised. The staff was also very helpful whenever I had a question. I will definitely recommend them in the future to my friends.

Sherard W.

I cannot say enough about this law firm. From the initial consultation to our discharge, the entire office kept me updated with every step of the entire process. I came to the Gingold after a bad experience with another law firm. Ira and Jamie immediately began treating me like family through this experience. In the end, they assisted with eliminating many debts including my 2nd mortgage. I cannot say enough about the experience and knowledge that Ira brought to the table from the office visits to the court time. Thank you very much for helping me through this tough time. Thank you.

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