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Rate of College Graduates Filing for Bankruptcy on the Rise

According to a recent study, the rate of college graduates filing for bankruptcy in the United States has increased a whopping 20% over the past five years. The study, conducted by the Institute for Financial Literacy, indicates that the percentage of debtors with a bachelor’s degree increased from 11.2% in 2006 to 13.6% in 2010. During that same period, the percentage of debtors with a high school diploma, or who did not finish college, declined. If you are considering filing for bankruptcy in Oklahoma, your first course of action should be to contact an experienced Oklahoma bankruptcy attorney. Our bankruptcy lawyers at Oklahoma Legal Center have years of experiencing helping debtors in Oklahoma decide which course of action is best for their financial situation.

Great Recession Adversely Affects College Graduates

“The Great Recession has had a dramatic impact on the bankruptcy filings of American consumers across the economic spectrum – including college-educated, high-income earners,” said executive director and founder of the Institute for Financial Literacy, Leslie Linfield. Historically, Linfield notes, the group most affected by bankruptcy has been low-income consumers without college degrees. While this group still accounts for the largest share of bankruptcy filers, this trend could be on the verge of a significant change.

Since the Institute for Financial Literacy study was first begun in 2006, there has been a gradual shift toward higher-income earners filing for bankruptcy. In 2006, for example, only 5.5% of the bankruptcy filers who participated in the study made more than $60,000 per year. By 2010, this figure increase to more than 9%. This revealing study involved more than 50,000 respondents and ran from 2006 to 2010, tracking the financial status of debtors since the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act in 2005. According to the study, college graduates are the fastest-growing group of consumers who have filed for bankruptcy protection in the past five years.

Our Oklahoma Bankruptcy Attorneys Can Help

“We’re told that if you do go and get advanced education, you’re going to be almost guaranteed this economic success,” said Linfield. But the recession has proven that “higher education was no guarantee that you weren’t going to be at risk.” If you think filing for bankruptcy in Oklahoma might be the right choice for you, consult our qualified bankruptcy attorneys at Oklahoma Legal Center today. Our law firm is located in Oklahoma City, and our lawyers are extremely familiar with Oklahoma bankruptcy laws and regulations. Filing for bankruptcy isn’t easy; our bankruptcy attorneys can help you navigate the sometimes difficult process and may be able to help you relieve yourself of the debt you have been struggling under for years.

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