Bankruptcy Rate

Definition

Consumer (non-business) bankruptcy filing rate per 1,000 people, 2011. Bankruptcy is the legal status of an individual who cannot repay the debts owed to creditors.

Description

Bankruptcy which results when a household’s expenses far exceed its income, often due to catastrophic illness, loss of a job, death or divorce. While many Scorecard measures focus on households with little or no wealth, the bankruptcy rate describes the plight of those who were once financially secure until their debt became too overwhelming to manage.

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Bankruptcy Rate

State	Bankruptcy Rate (Per 1,000 People)	Rank
United States	4.4
Alabama	6.2	46
Alaska	1.3	1
Arizona	5.4	40
Arkansas	4.8	37
California	6.2	45
Colorado	5.7	43
Connecticut	2.6	17
Delaware	3.9	26
District of Columbia	1.5	2
Florida	4.8	36
Georgia	7.3	49
Hawaii	2.3	8
Idaho	4.6	35
Illinois	5.5	41
Indiana	5.9	44
Iowa	2.5	14
Kansas	3.4	22
Kentucky	5.0	38
Louisiana	3.7	25
Maine	2.6	16
Maryland	4.3	29
Massachusetts	3.0	19
Michigan	5.7	42
Minnesota	3.5	24
Mississippi	4.5	31
Missouri	7.8	50
Montana	2.5	13
Nebraska	3.5	23
Nevada	8.6	51
New Hampshire	3.4	21
New Jersey	4.2	28
New Mexico	2.6	18
New York	2.4	11
North Carolina	2.3	9
North Dakota	1.8	5
Ohio	5.0	39
Oklahoma	3.4	20
Oregon	4.4	30
Pennsylvania	2.5	15
Rhode Island	4.6	33
South Carolina	1.6	3
South Dakota	2.2	7
Tennessee	7.2	48
Texas	1.9	6
Utah	6.3	47
Vermont	1.7	4
Virginia	4.0	27
Washington	4.5	32
West Virginia	2.5	12
Wisconsin	4.6	34
Wyoming	2.3	10

Source

“Annual Business and Non-business Filings by State (2007-11).” Alexandria, VA: American Bankruptcy Institute.

2011 American Community Survey. Washington, DC: U.S. Department of Commerce, Census Bureau, 2012.