Debtors' Assessments of Bankruptcy Financial Education
FINANCIAL DECISIONS ACROSS THE LIFESPAN, Douglas Lamdin, ed., Springer, Forthcoming
31 Pages Posted: 10 Aug 2010 Last revised: 14 Sep 2010
Date Written: August 6, 2010
Bankruptcy law now requires individuals to complete a financial education class to receive a discharge of debts. Using data from the 2007 Consumer Bankruptcy Project, this chapter examines debtors’ attitudes about the value of financial education. The data shows that debtors’ attitudes vary by race, educational attainment, age, and familiarity with household finances. While many debtors express optimism about the future benefits of financial education, only about one in three debtors believes financial education could have prevented their bankruptcy. These findings have implications for designing financial education curricula and for understanding the causal relationship between financial distress and financial knowledge.
Keywords: Consumer Bankruptcy, Bankruptcy, Financial Education, Financial Literacy, BAPCPA
JEL Classification: G33, D12, D18, K40
Suggested Citation: Suggested Citation