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The hard-working American middle-class is filing bankruptcy in higher numbers than ever before. It’s not the rich, nor the poor, but the middle-class that is falling behind on all payments quicker than they can catch up, and it’s costing them their credit score, their financial future, and their wallet.

In the past, the path to financial freedom and success has been a college degree and home ownership. These days, the path to financial freedom and success is anyone’s guess.

The proportion of bankruptcy filers who have been to college, whether they dropped out or graduated, increased from 46.5% in 1991 to 58.9% in 2007, a recent study called “The Vulnerable Middle Class: Bankruptcy and Class Status” has found.

Wrap this amazing number around your head; 100,000 middle-class Americans filed for bankruptcy every single month in 2007, and that number has only grown. That’s every month that 100,000 hard working Americans toss in the towel, throw up the white flag, and give up to financial ruin.

The study found that many college graduates are not graduating with the forward momentum that they used to. That forward momentum that would get them to financial freedom and avoid bankruptcy has been hindered by the outrageously high costs of college and the time it takes to pay back student loans.

The falling value in middle-class homes has also created a huge problem and led many into bankruptcy. While a home and a fixed income used to be an American consumer’s nest-egg, it has now become a burden. Most American’s these days are paying more then there home is worth, burying themselves in debt from fraudulent second and third mortgages that they can’t afford.

In this domino effect, as USA Today puts it, student loans matched with the failing housing market matched with record high unemployment rates, and the middle-class just didn’t stand a chance. While foreclosures brought more bankruptcy filings, new homes were just not being built which led to more jobs lost in the construction industry, which led to more bankruptcies.

When times were good, many middle-class admit to living beyond their means. It’s now, when so many are filing for bankruptcy, that many are learning the value of money again and hopefully teaching younger generations of their financial flaws.

Thinking about filing for bankruptcy? Maybe you should give us a call first at 1-877-386-3603