Question Bankruptcy - High Net Worth Filers?

[tjp]

Hi Everyone,

For a paper I'm writing for an economics class, I need to find some sort of breakdown of the net-worths of people who file for bankruptcy. Specifically, I'm looking at high-net worth individuals. In your research, have you come across any studies, websites, or databases that may be of use to me? Thus far I've been having a pretty difficult time finding anything.

Thanks and best of luck to all of you,

Ty

[keepmine]

You may find something here: http://www.justice.gov/ust/eo/public_affairs/articles/

[LadyInTheRed]

You can find some BK statistics here: http://www.uscourts.gov/Statistics/B...tatistics.aspx

But, it doesn't look like they have what you are looking for. I'm not sure you'll find what you are looking for. The statistical information that the courts collect is on page 2 of the following form: http://www.uscourts.gov/uscourts/Rul...mary_1207f.pdf

[bcohen]

By definition, wouldn't anyone who files for bankruptcy have a negative net worth, i.e. they owe more than they own? I know that my net worth is currently negative by about $40k, and I will be filing soon.

[LadyInTheRed]

By definition, wouldn't anyone who files for bankruptcy have a negative net worth, i.e. they owe more than they own? I know that my net worth is currently negative by about $40k, and I will be filing soon.

I think that's true for the majority of BK filers, especially Chap 7 filers. But, people who file Chap 13 and have enough income to pay for their non exempt assets over 5 years could have a high net worth. People may also have large retirement accounts that are exempt in BK, but drive their net worth up. Also, I believe there is at least one state with an unlimited homestead exemption that could create net worth for a bankrupt person.

I think it is common and reasonable to think that having negative net worth is the definition of being bankruptcy. But, given how BK actually works, I think a more practical definition is that expenses exceed income.

[keepmine]

By definition, wouldn't anyone who files for bankruptcy have a negative net worth, i.e. they owe more than they own? I know that my net worth is currently negative by about $40k, and I will be filing soon.

Not really. In some states, equity in real estate is 6 figures in a few more, it's unlimited. Plus, there's a $1MM plus exemption for IRA's and there appears to be no limit on 401K's.
Personally, I discharged $71K worth of debt and emerged from bk with a net worth of over $90K.

[HHM]

First, it is not clear from your post exactly what you are looking for.

That is tough, there may be some law journal articles or articles published by the American Bankruptcy Institute. However, I am not aware of any studies or statistical reports that break down BK debtors by net worth (i.e. total value of assets minus total debt). The data points exists in the petitions, Form B6 does contain the data, but I am not aware of any statistical summary that gets you what you are looking for.

The closest you will get is this report.

http://www.uscourts.gov/uscourts/Statistics/BankruptcyStatistics/BAPCPA/2011/tables-1A-X.pdf

But it doesn't break it down by debtor or debtor category. But again, it is unclear what it is you are looking for.