In today's economy, it's all too easy to get buried in debt. Living beyond one's means has become quite common, and even the most responsible debtor can be blindsided by unforeseen circumstances such as job loss or medical expenses. In some cases, the best solution is to file bankruptcy.
Bankruptcy is more common than most people realize. Here are 30 facts and statistics that will open your eyes.
1. Chapter 7 is the most common type of personal bankruptcy filing, making up 69% of filings in 2012. 30% of filings were under Chapter 13, and less than 1% were under Chapter 11.
2. Chapter 7 bankruptcy involves the selling of the filer's assets to repay debts. Certain assets may be exempt, allowing the filer to keep them.
3. Chapter 13 bankruptcy requires debtors to commit a portion of their income to repaying their debts for the next three to five years. Once the payment plan is completed, the remaining debt is discharged.
4. Nearly two-thirds of Chapter 13 bankruptcies are not completed, leaving the filer with undischarged debts.