Bankruptcy More of a Girl Thing

A major new source of fresh, meaningful bankruptcy statistics has come to my attention. The Institute for Financial Literacy is based in Portland, Maine. To quote from the IFL website:

The Institute for Financial Literacy is a non-profit organization whose mission is to make effective financial literacy education available to all American adults. The Institute accomplishes its mission by developing financial literacy education programs, partnering with non-profit, educational and governmental organizations, and publishing the National Standards in Adult Financial Literacy Education. The Institute is funded by program fees, private donations, and grants from public and private foundations.

The Institute is an educational organization focused on presenting unbiased, neutral information to its clients. The Institute does not create debt repayment plans or negotiate debts for its clients.

Recently, the IFL published what promises to be an annual study, entitled “Who Went Bankrupt in 2006.” This 22 page white paper is full of unbiased information about the causes of consumer bankruptcy, and the demographics of consumer debtors. The study draws no conclusions but identifies the “areas of growing concern”: (i) bankruptcy filing rates for seniors; (ii) the role of identity theft; (iii) women filing bankruptcy at higher rates then men; and (iv) what role education plays in financial management.

Consistent with earlier studies, IFL found that bankruptcies in 2006 were distributed between women and men at roughly 53.6% to 46.4%, respectively, as compared to the 51% to 49% ratio existing in the general population. The study wonders why this is, but it seems to me that any family lawyer could help you understand that one. Also, it is still the case that women are underemployed and underpaid compared to their male counterparts.

But how about this? While the percentage of white and black debtors roughly mirrors their shares of the general population, hispanic debtors file at a rate less than half of their share of the general population, topping the asians as the least bankruptcy prone ethnicity.