Bankruptcy Handout

Chapter 7

What is Bankruptcy?

Bankruptcy is a generalized term for a federal court procedure that helps consumers and businesses get rid of their debts and repay their creditors
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Facts

  • 1,139,601 Chapter 7 files were made in the year 2010. 39,485 of those were businesses and the individual's flied the rest of 1,100,116.

  • People from all ages file for bankruptcy from 19-90, but the average is 38.

  • Couples filing jointly make up about 44 percent. Women who file single bankruptcy petitions account for about 30 percent of filings. Men filing singly compose only 26 percent of filers.

  • Bankruptcy filers tend to have a slightly higher education level than non-filers.

  • Two-thirds of bankruptcy filers cited unemployment as a reason for their filing.

  • About 50 percent of bankruptcy filers have dealt with a significant medical event in their recent past.

  • A whopping 91 percent of filers report medical expenses, job loss or divorce as a contributor to their bankruptcy case.

How will this affect the people you love and care about?

What are the differences between different types of bankruptcy?

Do you ever wonder about the true details of bankruptcy?