Following on from our 2015 Minnesota Bankruptcy Statistics article, we thought we’d compare Minnesota to the state with the lowest ratio of Chapter 7 Bankruptcies in 2015.
- How does Minnesota compare to the states with the highest and lowest number of bankruptcies filed in 2015?
- How does Minnesota compare to the highest and lowest per capita bankruptcy filings?
- How does Minnesota compare to the states with the highest ratio of Chapter 7 bankruptcies?
- How does Minnesota Compares To Bankruptcies in the Lowest and Highest States By Population?
Louisiana – Lowest Chapter 7 Bankruptcies
Louisiana has the lowest ratio of Chapter 7 Bankruptcies and so the highest number of Chapter 13 Bankruptcy cases.
In 2015 Louisiana saw:
- 13,483 bankruptcies filed
- 28% Chapter 7 (3,782)
- 72% Chapter 13 (9,597)
- 8% Decrease on 2014
- 00 Filings per capita (1000s) 2009 census data
- 4,492,076 people in Louisiana 2009 census data
In 2015 Minnesota saw:
- 10,500 bankruptcies filed
- 85% Chapter 7 (8,868)
- 15% Chapter 13 (1,577)
- 13% decrease on 2014
- 99 filings per capita (1000s) using 2009 census data
- 5,266,214 people in Minnesota (2009 census data)
What does the data mean?
Number of bankruptcies
- Over 22% fewer bankruptcies filed in Minnesota (10,500) compared to Louisiana (13,483)
Louisiana filed more than 67% fewer Chapter 7 Bankruptcies than Minnesota, suggesting that people in Louisiana are more likely to be able to afford the repayments of a Chapter 13 Bankruptcy if they are struggling financially.
- Over 33% fewer bankruptcy filings per capita in Minnesota (1.99) compared to Louisiana (3.00)
People in Louisiana are far more likely to file for bankruptcy than those in Minnesota, yet when they do, they are likely to file for Chapter 13 bankruptcy.
- Over 14% fewer people living in Louisiana (4,492,076) compared to Minnesota (5,266,214)
Despite having a smaller population, people in Louisiana are much more likely to file for bankruptcy than people in Minnesota.
Median household income by state:
- Louisiana – $41,734
- Minnesota – $61,824
Again like Tennessee, having a lower income despite a lower cost of living can often mean that there is no money to save, and so no money for sudden or unexpected expenses, leaving people at risk of needing to file bankruptcy.
However, in Louisiana, it would seem as though there is more money to save or at least money to afford the repayments of a Chapter 13 Bankruptcy.
Louisiana v Minnesota
Using http://money.cnn.com/calculator/pf/cost-of-living/ shows that someone earning $40,000 in New Orleans, Louisiana needs over $45,000 to maintain the same standard of living in Minneapolis Minnesota.
In Minneapolis, Minnesota Groceries cost 6% more, Housing costs 16% more, Utilities cost 8% more, Transportation costs 16% more and Healthcare costs 7% more compared to New Orleans, Louisiana.
With the cost of living significantly lower in Louisiana, it might explain why people can afford to make Chapter 13 Bankruptcy payments, which is why Louisiana has a low ratio of Chapter 7 Bankruptcies in Louisiana.