Contact: John Hartgen
(703) 618-0892
STUDY FINDS
BANKRUPTCY FILING RATE BY OLDER AMERICANS OUTPACES THE GENERAL
POPULATION
April 26, 2007,
w:st='on'>Alexandria
w:st='on'>Va.
that bankruptcy filings by older Americans age 55 and over are
increasing at a faster rate than the general population. John Golmant
and Tom Ulrich, researchers at the Administrative Office of the U.S.
Courts (AOUSC), conducted their study by comparing chapter 7 and 13
consumer filing data from 1994 and 2002 to examine how age demographics
affect bankruptcy filings. The results of the study are summarized in
their article titled “Aging and Bankruptcy: The Baby Boomers Meet
Up at Bankruptcy Court,” published in the May 2007 issue of the
American Bankruptcy Institute Journal.
The study confirms that filing
rates for Americans ages 45 and over are increasing larger than any
other age category of bankruptcy petitioners. The study found that
bankruptcy petitioners over the age of 45 increased from 27 percent of
all filers in 1994 to 39 percent in 2002. The fastest growth in chapter
7 filings occurred for petitioners over the age of 55. The study also
found a general aging of the debtor population, with the median age for
bankruptcy petitioners rising from 37.7 in 1994 to 41.4 by
2002.
In contrast to the trend of
increased filing rates experienced by older Americans, the age group
with the greatest drop in bankruptcy filing rates was among those age 25
and younger. The filing rate for young people decreased from 11 percent
of the overall bankruptcy petitioners in 1994 to 4 percent in
2002.
In conducting their research,
Golmant and Ulrich looked to determine the proportion of bankruptcy
petitioners that fall within particular age categories and whether these
proportions have changed over time. While previous demographic studies
primarily relied on survey data to find out more about the filing rates
of different age groups, the researchers evaluated actual data from
courts and public records available through outside
resources.
The study concludes that a
number of factors are behind the rising “Baby Boomer”
bankruptcy filing rate. Golmant and Ulrich point to the growing amount
of mortgage debt carried by older Americans as they tap into their home
equity, and rising health care costs as primary reasons behind the
growing bankruptcy rate for those 55 years of age and older. Facing
reduced income in retirement and escalating health care costs, the
researchers said they expect that the increasing bankruptcy filing rates
for older Americans will persist into the foreseeable future.
To obtain a copy of
“Aging and Bankruptcy: The Baby Boomers Meet Up at Bankruptcy
Court,” please contact
Hartgen
title='mailto:jhartgen@abiworld.org'
href='mailto:jhartgen@abiworld.org'>jhartgen@abiworld.org.
###
ABI is the largest
multi-disciplinary, nonpartisan organization dedicated to research and
education on matters related to insolvency. ABI was founded in 1982 to
provide Congress and the public with unbiased analysis of bankruptcy
issues. The ABI membership includes more than 11,000 attorneys,
accountants, bankers, judges, professors, lenders, turnaround
specialists and other bankruptcy professionals, providing a forum for
the exchange of ideas and information. For additional information on
ABI, visit www.abiworld.org. For additional conference information,
visit
href='http://www.abiworld.org/conferences.html'>
size='3'>http://www.abiworld.org/conferences.html.