Financial, demographic, and psychological differences between chapter 13 bankruptcy filers and non-filers

Abstract

This study finds financial, demographic, and psychological differences between Chapter 13 filers and non-filers. Financial training reduces the likelihood of filing for personal bankruptcy. Males are twice as likely as females to be filers. Blacks are twice as likely as Whites to be filers. A single per- son is 38% less likely to file than a married person. Homeowners are five times as likely as renters to be filers. Increases in education, religious commitment, and parents’ income reduce the likelihood of filing. Increases in the psychological factors, self-efficacy, locus of control, and self-control, reduce the likelihood of filing for Chapter 13 bankruptcies. These results can be used to influence public policy to reduce personal bankruptcy.