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Middle-Class Being Driven Into Bankruptcy by Recession According to Report

Middle-Class Being Driven Into Bankruptcy by Recession According to Report

Written by Craig D. Robins, Esq.

This week, the Institute for Financial Literacy released a report which reveals that more middle-class Americans than ever are filing for bankruptcy as a result of the recession.

The report found that those Americans earning $40,000 or more per year are increasingly seeking debt relief through bankruptcy. 

The study found that the average American in financial distress which seeks credit counseling services is a 35-to-44 year-old married Caucasian with a high school degree or some college who is employed and earning less than $30,000 per year.  In addition, many Americans, with incomes greater than $40,000 were also filing bankruptcy.

However, the report also found that greater percentages of the following demographic groups were filing for bankruptcy:

        Americans 45 to 64 years old

        Americans of Asian and Caucasian descent

        Americans with Associates or Bachelors degree

        Americans earning $40,000 or more per year

        Americans who are self-employed

        Americans who are married 

The report found that the four most common causes of financial distress included overextension on credit, unexpected expenses, reduction of income and job loss.

The findings of this report echo findings of other studies which have concluded that bankruptcy has indeed become a middle-class phenomenon.  Certainly, most Long Island bankruptcy filers these days are smack in the middle of the middle-class.  Click here [1] to read the full report. 

I just wrote a few days ago that most of my bankruptcy clients are typical middle class Long Island families.  I wrote about this phenomenon several years ago in an article, Consumer Bankruptcy: Bankruptcy has Become a Middle Class Phenomenon [2].
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