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Bankruptcy Statistics

Statistics on bankruptcy filings clearly reflect the tough economic times we’re in, and unfortunately things look to be the same in 2010 as the economy starts to turn but still remains weak. Year-over-year from 2007 to 2008, personal bankruptcy filings increased 33%, and 2009 saw a 32% increase from the previous year with over 1.4 million consumer bankruptcy filings. Nationwide, that means about one in every 80 households filed for bankruptcy. Of those 2009 personal bankruptcies, 205,000 were filed in California.

Unique to the current economic times we’re experiencing, personal bankruptcies are now cutting across every layer of society. On average, those filing today tend to be married, with higher incomes than previously, and are in their mid-40’s. One-third of those filing experienced job loss or job reduction triggering their financial hardships, 20% were adversely affected by overwhelming medical expenses, and 61% filing had no funds in emergency savings when the event occurred that pushed them into bankruptcy.

Bankruptcy Evaluation

Bankruptcies Filed by Famous People

Do you think only “down-and-out” individuals are the ones that file for bankruptcy? Think again. Throughout American history starting with some of the Fathers of the Constitution, notably Thomas Jefferson, there have been Presidents and many high profile or celebrity individuals who have filed bankruptcy as a smart remedy to start fresh after facing severe debt challenges. The bankruptcy laws provided them a new financial opportunity, enabling them to regain their financial footing and for most, to become well-off again.

All of these have filed for bankruptcy:

Donald Trump Walt Disney Henry Ford
John Wayne Ulysees S. Grant Willie Nelson
Larry King Francis Ford Coppola Kim Basinger
Tom Petty Meatloaf Toni Braxton
Tammy Wynette Marvin Gaye Wayne Newton
Lenny Dykstra Johnny Unitas Lawrence Taylor
Burt Reynolds MC Hammer Anna Nicole Smith
Perez Hilton LaToya Jackson Debbie Reynolds
Ruben Studdard Stephen Baldwin Dorothy Hamill
Mike Tyson Jerry Lee Lewis Andy Gibb
Mick Fleetwood Cindy Lauper Michael Vick