15 States Where Most People File Bankruptcy – Money Talks News | Vette Leader

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Editor’s Note: This story originally appeared on Smartest Dollar.

The COVID-19 pandemic has given many across the US an unexpected financial boost, but with the economy potentially facing a recession, households and businesses could face difficult months and years. And after years of encouraging downtrends, it could mean US bankruptcies will come back into focus.

The impact of the pandemic on consumer debt came as a pleasant economic surprise. Amid government stimulus payments and leniency, increased savings during the COVID-19 shutdown, and a tight job market with opportunities for wage increases, Americans have made great strides in paying down debt over the past two years.

But more recently, as inflation weighs on budgets, lenders hike interest rates and some industries face major layoffs, households are feeling increasing financial pressures that could make it harder to keep up with debt payments.

To identify the states with the most bankruptcies in 2021, Smartest Dollar researchers calculated the number of bankruptcies per million residents. The data used in this analysis comes from the US Criminal Courts Bureau, the US Census Bureau and Experian.

Here are the states with the most bankruptcies per capita.

15. Missouri

Branson, Missouri
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  • Insolvencies per million inhabitants (2021): 1,590
  • Corporate insolvencies per million inhabitants (2021): 24
  • Non-corporate bankruptcies per million inhabitants (2021): 1,566
  • Average creditworthiness (2021): 711
  • Unemployment rate (2020): 4.5%

14.Wisconsin

Madison, Wisconsin
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  • Insolvencies per million inhabitants (2021): 1,598
  • Corporate insolvencies per million inhabitants (2021): 33
  • Non-corporate bankruptcies per million inhabitants (2021): 1,565
  • Average creditworthiness (2021): 735
  • Unemployment rate (2020): 3.6%

13. Illinois

Chicago, Illinois
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  • Insolvencies per million inhabitants (2021): 1,647
  • Corporate insolvencies per million inhabitants (2021): 43
  • Non-corporate bankruptcies per million inhabitants (2021): 1,604
  • Average creditworthiness (2021): 719
  • Unemployment rate (2020): 6.0%

12.Michigan

Detroit, Mich
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  • Insolvencies per million inhabitants (2021): 1,697
  • Corporate insolvencies per million inhabitants (2021): 25
  • Non-corporate bankruptcies per million inhabitants (2021): 1,671
  • Average creditworthiness (2021): 719
  • Unemployment rate (2020): 6.0%

11. Delaware

Wilmington, Delaware
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  • Insolvencies per million inhabitants (2021): 1,723
  • Corporate insolvencies per million inhabitants (2021): 691
  • Non-corporate bankruptcies per million inhabitants (2021): 1,031
  • Average creditworthiness (2021): 714
  • Unemployment rate (2020): 5.8%

10. Utah

Utah
By Fotoluminate LLC / Shutterstock.com
  • Insolvencies per million inhabitants (2021): 1,769
  • Corporate insolvencies per million inhabitants (2021): 25
  • Non-corporate bankruptcies per million inhabitants (2021): 1,745
  • Average creditworthiness (2021): 727
  • Unemployment rate (2020): 3.6%

9.Ohio

Columbus, Ohio
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  • Insolvencies per million inhabitants (2021): 1,783
  • Corporate insolvencies per million inhabitants (2021): 30
  • Non-corporate bankruptcies per million inhabitants (2021): 1,753
  • Average creditworthiness (2021): 715
  • Unemployment rate (2020): 5.3%

8. Arkansas

Little Rock, Arkansas
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  • Insolvencies per million inhabitants (2021): 1,824
  • Corporate insolvencies per million inhabitants (2021): 41
  • Non-corporate bankruptcies per million inhabitants (2021): 1,783
  • Average creditworthiness (2021): 694
  • Unemployment rate (2020): 5.2%

7. Georgia

Atlanta, Georgia, Piedmont Park Skyline Fall
Sean Pavone/Shutterstock.com
  • Insolvencies per million inhabitants (2021): 2.015
  • Corporate insolvencies per million inhabitants (2021): 45
  • Non-corporate bankruptcies per million inhabitants (2021): 1,970
  • Average creditworthiness (2021): 693
  • Unemployment rate (2020): 5.6%

6. Kentucky

Frankfurt Kentucky
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  • Insolvencies per million inhabitants (2021): 2,038
  • Corporate insolvencies per million inhabitants (2021): 24
  • Non-corporate bankruptcies per million inhabitants (2021): 2.014
  • Average creditworthiness (2021): 702
  • Unemployment rate (2020): 5.4%

5. Mississippi

Gulf Coast at Biloxi, Mississippi.
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  • Insolvencies per million inhabitants (2021): 2,068
  • Corporate insolvencies per million inhabitants (2021): 50
  • Non-corporate bankruptcies per million inhabitants (2021): 2.018
  • Average creditworthiness (2021): 681
  • Unemployment rate (2020): 7.1%

4.Indiana

Indianapolis, Indiana
Alexey Stiop / Shutterstock.com
  • Insolvencies per million inhabitants (2021): 2.163
  • Corporate insolvencies per million inhabitants (2021): 29
  • Non-corporate bankruptcies per million inhabitants (2021): 2.134
  • Average creditworthiness (2021): 712
  • Unemployment rate (2020): 4.7%

3. Tennessee

Chattanooga, Tennessee
Kevin Ruck / Shutterstock.com
  • Insolvencies per million inhabitants (2021): 2,280
  • Corporate insolvencies per million inhabitants (2021): 33
  • Non-corporate bankruptcies per million inhabitants (2021): 2.247
  • Average creditworthiness (2021): 701
  • Unemployment rate (2020): 5.3%

2.Nevada

Reno, Nevada
Don Mammoser / Shutterstock.com
  • Insolvencies per million inhabitants (2021): 2.308
  • Corporate insolvencies per million inhabitants (2021): 75
  • Non-corporate bankruptcies per million inhabitants (2021): 2.234
  • Average creditworthiness (2021): 701
  • Unemployment rate (2020): 6.6%

1. Alabama

Huntsville Alabama cityscape skyline
By Sean Pavone / Shutterstock.com
  • Insolvencies per million inhabitants (2021): 3,053
  • Corporate insolvencies per million inhabitants (2021): 32
  • Non-corporate bankruptcies per million inhabitants (2021): 3.021
  • Average creditworthiness (2021): 691
  • Unemployment rate (2020): 5.6%

methodology

A man studies financial data on his computer
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The data used in this analysis is sourced from the US Census Bureau’s American Community Survey (2020), the United States General Court’s bankruptcy statistics and Experian’s FICO Credit Score by State dataset.

To determine the states with the most bankruptcies, Smartest Dollar researchers calculated the number of bankruptcies per million residents. The number of bankruptcies refers to 2021, while the population data is from 2020, which is the latest data available. Note that the unemployment rates used for the analysis are for people aged 16 and over.

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