Discover the Colorado bankruptcy statistics, average number of filers, average debt, serial bankruptcies and bankruptcy success rates in Colorado.
Americans have viewed varying and dynamic leaps in bankruptcy filings during the past century. Up until 1950, filing for personal bankruptcy was among rarities. But during the later years, a number of factors contributed leading to more filings by the individuals. Especially during the years between 1980 to 2004, bankruptcy filings across States increased drastically. In fact, the average rate for filing in 2004 was 5.3 per 1,000 individuals. This was 4-times the rate in 1980. Further, in 2005, personal filing reached its all-time highest. And every one of 55 people had to apply for this debt relief tool.
Colorado also got equally affected by this increasing rate of personal bankruptcy filings and the reasons are many. For example, weak housing markets, unemployment and most importantly, heavy consumer debt. Even the research has found that people use bankruptcy as a last resort when their piled up debts get combined with some unexpected circumstances including job loss, medical expenses or divorce. So, consumer debt is one of the major reasons that people choose to go bankrupt in Colorado. Let’s take a look at the debt situation and the types of debt owed by the Coloradans.
Average Debt in Colorado Bankruptcy
Although, Colorado is among the states with the lowest obesity rates in its people. But when it comes to financial health, the situation is not ideal. A recent study from howmuch.net found that the per capita debt burden in Colorado is $71,340. Also, Colorado at 4th position among the list of states with the highest per capita debt burden. This study is based on the data from the New York Federal Reserve and Credit Karma. It is actually, a combination of many different types of debts such as mortgages, student loans, credit card and, medical bills.
Types of Debts
Credit card Debt in Colorado
Recently, a financial news website 24/7 Wall St. examined the average credit card debt owned by people in 50 states. Surprisingly, they found Colorado at number 8th among states with highest credit card debt with an average of $6,718.
Mortgage Debt in Colorado
Mortgage debt tops the list among all other types of debts owed by residents of Denver, Aurora, Littleton and, Centennial. The average amount of mortgage debt in Colorado is $258,026 which has increased by 3.2% since the last year.
Student Loan Debt
As per the report of University of Colorado Boulder, the resident-students in Colorado owe an average student debt of $24,400. Furthermore, about half of the young adults owe some form of debt when they graduate. Find some useful options for your student loan debt in Colorado in this article.
All this crushing burden of debt coupled with an unexpected event lead the Coloradans to file for bankruptcy. They choose either chapter 7 or chapter 13 (whichever suit their needs) to overcome their financial struggles.
Now, let’s take a look at bankruptcy statistics in Colorado.
Colorado Bankruptcy Statistics
Bankruptcy cases filled in Colorado from 2010-2019
The given table and graph represent the number of consumer bankruptcies (chapter 7 and 13) filed in Colorado through 2010-2019. The data is collected from the American Bankruptcy Institute (ABI). And represent all the filings for 12 months from 1st Jan to 31st Dec each year.
As displayed above, the bankruptcy filing rates in Colorado have declined during recent years.
Chapter 7, Chapter 13 and pro se filers in 2019
The official Colorado bankruptcy website offers an interactive tool to view how many people file bankruptcy each month. You can find it under the ‘Court Info’ option as ‘Bankruptcy Filing Statistics’. As per the data available there, 5318 people have filed for Chapter 7 so far in 2019. While 1512 have filed for chapter 13 during this year. Among all these cases, 523 are pro se filers. This data is calculated from January 1 to June 30, 2019.
To have a clearer view of 2019 bankruptcy filings in Colorado, see the below month-wise break down:
Bankruptcy Success Rates
Chapter 13 success rates
As per the report of American Bankruptcy Institute (ABI) the success rate for Chapter 7 bankruptcy is 38. 8 percent. This is the rate for the filers who seek an attorney’s services to file their case. Conversely, the situation is even worse for the pro se filers. And one out of 45 cases pro se cases get dismissed. Additionally, more than 80% of such cases get a dismissal from the court within three months of filing. That’s why filing without an attorney is not a wise decision at all. You can download this ABI’s report via this link.
Chapter 7 success rates
The nationwide success rates for chapter-7 are way higher and 96% of the chapter 7 cases get a successful discharge. Not only this but in 93% of cases, the filers are able to keep all of their valuable property.
Repeat filers or serial bankruptcy filers are the people who file for bankruptcy more than once. A research done by Consumer Interest Annual found that about 21% of these filers are abusers of bankruptcy code. In order to track down their number. ABI prepared a report and found that anywhere from 1-20 percent of people applying for bankruptcy are repeat filers. Another notable point is that more people file for chapter 13 are serial filers as compared to chapter 7.
Get your Fresh Start Today
Bankruptcy is not a failure rather a legal way to successfully overcome your financial hardships. If you’re also facing such a situation and not finding a way out, an experienced bankruptcy attorney can help. If you are facing a possible Colorado bankruptcy schedule a free consultation to get the most personalized advice from a Denver bankruptcy attorney.