The September issue of the American Bankruptcy Institute's ABI Journal contains a very interesting study regarding the prevalence of bankruptcy filings among Americans born between 1946 and 1964, otherwise known as baby boomers. According to the study, baby boomers comprised 42 percent of all bankruptcy filers in 2007, while Americans 55 and older were found to be filing for bankruptcy at a much higher rate than Americans 25 and under.

"Aging and Bankruptcy Revisited" was conducted by two employees of the Administrative Office of the U.S. Courts in Washington D.C., John Golmant and James Woods. Both Golmant and Woods gained nationwide attention in 2002 for their revolutionary study of the connection between bankruptcy filing and age.

The current study continued where this 2002 study left off. Specifically, it was designed to determine if the patterns of the 2002 study continued after the enactment of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA). This was achieved through painstaking analysis of national bankruptcy filing data from 1994, 2002 and 2007.

"Aging and Bankruptcy Revisited" reached the following general conclusions:

• People age 25 and under accounted for only 1.7 percent of bankruptcy filers in 2007. However, they accounted for 4 percent in 2002 and 11 percent in 1994.

• In 2007, the average age of bankruptcy filers was 44.9. In 2002, the average age was 41.4 and in 1994, the average age was 37.7.

• From 2002-2007, the number of bankruptcy filings by people 55and up increased by 61 percent.

According to Golmant and Woods, there are three reasons why the number of baby boomers filing for bankruptcy is so much greater:

• The housing crisis
• High levels of credit card debt
• Rising health care costs

Fortunately, those facing financial troubles (regardless of age) can start down a new financial path by filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy.

The following post was for informational purposes only and is not to be construed as legal advice. Consider speaking with an experienced legal professional to learn more about bankruptcy.

Stay tuned for more from our San Antonio bankruptcy blog ...

Related Resources:
  
• Growth of Older Americans Filing for Bankruptcy Outpaces Rest of Population, According to Study in Latest ABI Journal (American Bankruptcy Institute)
• Baby Boomer Bankruptcies on the Rise (Wall Street Journal)