Bankruptcy and Delinquency Statistics

Total bankruptcy filings in 2009 reached 1.4 million in 2009, up from 1.09 million in 2008. The vast majority were personal bankruptcies — Chapter 7 and Chapter 13. Business bankruptcies made up 6 percent of all filings. (Source: AACER, the American Bankruptcy Institute, January 2010)
Nevada surpassed Tennessee atop the listing of bankruptcies per capita, with more than 11 bankruptcies filed for every 1,000 residents. Tennessee and Georgia took the second and third slots behind the Silver State. Compared to 2009 third-quarter data, the biggest mover was Arizona, which rose six spots from No. 21 to No. 15. At the other end of the scale is Alaska, which had only 1.4 bankruptcies per capita, meaning the average Nevadan was eight times more likely to file bankruptcy than the average Alaskan. (Source: AACER, the American Bankruptcy Institute, January 2010)
Young Americans now have the second highest rate of bankruptcy, just after those aged 35 to 44. The rate among 25- to 34-year-olds increased between 1991 and 2001, indicating that this generation is more likely to file bankruptcy as young adults than were young boomers at the same age. (Source: “Generation Broke: Growth of Debt Among Young Americans”)
Memphis, Tenn., consumers have suffered the most bankruptcies. (Source: Men’s Health magazine’s personal debt survey, July 2008)
Yonkers, N.Y., has suffered the fewest bankruptcies. (Source: Men’s Health magazine’s personal debt survey, July 2008)

Delinquency
U.S. credit card 60-day delinquency rate: 4.27 percent. (Source: Fitch Ratings, April 2010)
According to Fitch Ratings, the number of cardholders 60 or more days late on payments fell in January of 2010 to 4.50 percent. That number is flat year-to-year. Those 30 days late declined to 5.72 percent and is down 5 percent year-to-year. (Source: Associated Press, March 2010)
According to Fitch Ratings, the number of credit card defaults hit 11.37 percent, the highest level since a record 11.52 percent in September 2009. (Source: Associated Press, March 2010)
In the last 12 months, 15 percent of American adults, or nearly 34 million people, have been late making a credit card payment and 8 percent (18 million people) have missed a payment entirely. (Source: National Foundation for Credit Counseling, 2009 Financial Literacy Survey, April 2009)
26 percent of Americans, or more than 58 million adults, admit to not paying all of their bills on time. Among African-Americans, this number is at 51 percent. (Source: National Foundation for Credit Counseling, 2009 Financial Literacy Survey, April 2009)
Penalty fees from credit cards will add up to about $20.5 billion in 2009, according to R. K. Hammer, a consultant to the credit card industry. (Source: New York Times, September 2009)
Only eight percent of cards with penalty rate conditions offered to restore the original rate terms when payments are made on-time, usually after 12 months. (Source: Pew Safe Credit Cards Project, March 2009)
72 percent of cards included offers of low promotional rates which issuers could revoke after a single late payment. (Source: Pew Safe Credit Cards Project, March 2009)
From 1989 to 2004, the percentage of cardholders incurring fees due to late payments of 60 days or more increased from 4.8 percent to 8.0 percent. (Source: Demos.org, “Borrowing To Make Ends Meet,” November 2007)
One-fourth of the students surveyed in US PIRG’s 2008 Campus Credit Card Trap report said that they have paid a late fee, and 15 percent have paid an “over the limit” fee. (Source: U.S. PIRG, “Campus Credit Card Trap”)
When finances are tight, 59 percent of people would pay their credit card bills last. A majority — 52 percent — would pay the mortgage first and 38 percent say they would pay for utilities before paying other obligations. (Source: CreditCards.com survey, December 2008)
On average, today’s consumers are paying their bills on time, with less than half of all consumers have ever been reported as 30 or more days late on a payment. Only three out of 10 have ever been 60 or more days overdue on any credit obligation. Seventy-seven percent of all consumers have never had a loan or account that was 90+ days overdue, and fewer than 20 percent have ever had a loan or account closed by the lender due to default . (Source: myfico.com)

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