State bankruptcy rankings, 2010: Nevada holds its sad crown
By CreditCards.com staff
When it comes to filing for bankruptcies, Nevadans continued in 2010 to have the dubious honor of being way out in front of the residents of any other state.
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Total personal bankruptcy filings in the United States reached 1.53 million in 2010, an increase of 8 percent over 2009. That means just more than 5 out of every 1,000 Americans filed in the year.
About 7 of every 10 personal bankruptcies filed in 2010 were (Chapter 7 filings, under which debts are discharged; the remainder were Chapter 13) filings, in which a court-supervised repayment plan is created.
States change rankings
Tennessee and Georgia continued to flip-flop for second place and third place among the most bankruptcy-prone states. Georgia took back second place, with 7.92 filings per 1,000 residents in 2010.
Alaska continued to hold its place as the state whose citizens are least likely to file, at a rate of 1.6 filings per 1,000 people. That means someone from Nevada is about seven times more likely to file for bankruptcy than someone from Alaska.
Overall, bankruptcies continue to climb back toward the record 2.1 million recorded in 2005. In October of that year alone, more than 630,000 Americans filed for bankruptcy, rushing to avoid the effects of the Bankruptcy Abuse Prevention and Consumer Protection Act, which made it harder for individuals to erase debt.
"The steady climb of consumer filings, notwithstanding the 2005 bankruptcy law restrictions demonstrate that families continue to turn to bankruptcy as a result of high debt burdens and stagnant income growth, said Samuel J. Gerdano, executive director of the insolvency research group American Bankruptcy Institute, in a prepared statement. "We expect that consumer filings will continue to rise in 2011."
How did your state's residents rank in likelihood to file for bankruptcy? This table ranks the 50 states and the District of Columbia, with most likely to file at the top.
|State (Click the state name for details)||2010 end-of-year rank||Filings per 1,000 residents ||2009 end-of-year rank|
|District of Columbia||49||2.1||50|
|Source: Epic Systems Inc.|
Published: January 12, 2011
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