Middle class more likely to be bankrupt

Middle class people are around twice as likely to be forced into, or choose, personal bankruptcy, a study by the Centre for Corporate Law and Securities Regulation found.

Using basic demographic data in the annual reports of the Insolvency and Trustee Service, two researchers at the centre found that 28 per cent of insolvents in 2008 were in the occupation groups comprising managers, administrators, professionals or associate professionals, more than twice the percentage of that in 1997.

In 2008, 38 per cent of insolvents had personal income of $30,000 or more, up from 13 per cent in 1997.

The greatest increase in insolvency occurred within households with income of $50,000 or more, representing 49 per cent of bankrupts in 2008.