Marital Status and Other Correlates of Personal Bankruptcy, 1986–2004

ABSTRACT Relying on National Longitudinal Survey (NLS) data, this retrospective cohort study found that 11.6% (n = 882) of the eligible study sample (N = 7,609) declared personal or nonbusiness, nonentrepreneurial between 1986 and 2004. These debtors had average annual incomes that were about 2.5 times official poverty thresholds. Those who were divorced in 2004 were most likely to have declared bankruptcy (16.4%), followed by separated (13.9%), married with spouses present (11.2%), and never–married (7.0%) persons. Specific correlates of bankruptcy varied by year. Marital status was associated with likelihood of declaring bankruptcy in only 6 of 14 survey years: Never-married persons at the time of declared bankruptcy were less likely than married persons to declare, whereas formerly married persons, whether divorced or separated, were more likely than married persons to do so. Formerly married persons who declared bankruptcy bounced back economically to a lesser degree than did married persons, even though their predeclared bankruptcy levels of economic well-being were roughly equivalent. Interaction effects showed that formerly married women were more likely to declare bankruptcy than their male counterparts.