Most people avoid looking for a bankruptcy attorney until it’s too late. They worry about being categorized as someone in financial crisis, and they worry that the stigma will follow them for years to come. We understand but being prepared and ready to hire the right Kansas City bankruptcy attorney (if the time comes) can save you hassle and heartache.
How you have come to this situation should not influence whether you seek professional help. Reasons can range from getting too deep in credit card debt, going through a divorce, or being involved in a life-changing medical emergency. Regardless, you can still find the help you need to live out a bright future.
At Kentner Wyatt, LLC, we want to debunk your stereotypes about bankruptcy and help you consider the facts.
Who Files for Bankruptcy in the First Place?
Bankruptcy affects all segments of the population, so there isn’t just one type of person who files for bankruptcy. People with a variety of educational backgrounds, salaries, and financial circumstances may need this kind of assistance.
Location does seem to play a role. According to The American Bankruptcy Institute, five states accounted for a disproportionate percentage of the nation’s bankruptcy filings in 2011:
Just last year, ABI reported Kansas filings dropped by 21% from the 2020. Missouri also saw a decrease with filings down 22%. View bankruptcy statistics in your state here.
Does Marital Status Make a Difference?
Historically, older married couples were less likely to file for bankruptcy. Those numbers have changed, though, making financial planning and foresight vital for families.
Statistics containing such detailed demographic breakdowns date back to 2010. Married couples were the most likely to file, with 64% of filings being listed as married, 17% single, 15% divorced, and 3% widowed. This may come as a surprise. Most people think that a double income (often found in married couples) leads to more financial security. But the truth is, you can never know what the future might bring.
Regardless of marital status, numbers show that men and women file bankruptcy at nearly the same rate, 48% to 52% respectively.
Does Education Have an Effect?
Getting a good education doesn’t prevent you from falling into a financial crisis, either. People who file for bankruptcy come from every level of education. The highest percentage of bankruptcy filers had a high school education level at 36%, followed by 29% having some college education, and 20% having a bachelor’s degree or higher.
When looking at the largest growth in filings broken down by education level, those with higher education topped the charts. The percentage of those in this category who filed for bankruptcy grew 16% in just four years.
How Does Income Play a Role?
As can be expected, earning less income can put you at greater risk for a bankruptcy and there are significant correlations in bankruptcy statistics. The vast majority, 60%, of those who file for bankruptcy make less than $30,000 a year.
Of the cases filed in Kansas in 2020, the average monthly median income of filers was $2,941. In Missouri, most bankruptcy filers reported an average monthly median income of $3,053. But income isn’t the only thing to consider. The ratio of income to expenses is what can lead to bankruptcy. Those same Kansan filers reported monthly expenses that left only $156 of extra income per month. In Missouri, filers were left with only $222 per month.
Help is Here When You Need It Most.
As you can tell, people from all backgrounds and walks of life find themselves in need of bankruptcy help from time to time. And there’s no reason to feel ashamed of or put off talking with a bankruptcy lawyer. Regardless of who you are, how much you make, or how prepared you tried to be, help is there when you need it most. Don’t hesitate. Call Kentner Wyatt today for your free consultation: 816.527.0010.