Following on from our 2015 Minnesota Bankruptcy Statistics article, we thought we’d compare Minnesota to the states with the lowest and highest number of per capita bankruptcy filings 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 state with the lowest ratio of Chapter 7 bankruptcies?
- 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?
Here are the states with the lowest and highest numbers of bankruptcy per capita in 2015.
Again perhaps surprisingly, Alaska has the lowest per capita bankruptcy filings, whilst Tennessee has the highest.
Alaska – lowest
In 2015 Alaska saw:
- 441 bankruptcies filed
- 84% Chapter 7 (354)
- 16% Chapter 13 (69)
- 23% decrease on 2014
- 63 filings per capita
- 698,473 people in Alaska (2009 census data)
Minnesota
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)
Tennessee – highest
In 2015 Tennessee saw:
- 36,060 bankruptcies filed
- 40% Chapter 7 (14,323)
- 60% Chapter 13 (21,609)
- 11% decrease on 2014
- 73 filings per capita
- 6,296,254 people in Tennessee (2009 census data)
Number of bankruptcies
- Over 98% fewer bankruptcies filed in Alaska (441) compared to Tennessee (36,060)
- Over 70% fewer bankruptcies filed in Minnesota (10,500) compared to Tennessee (36,060)
- Over 95% fewer bankruptcies filed in Alaska (441) compared to Minnesota (10,500)
Comment
Tennessee saw more Chapter 13 Bankruptcies than Chapter 7 Bankruptcies, suggesting that people in Tennessee were more likely to be able to afford repayments, or didn’t meet the criteria for Chapter 7 Bankruptcy.
Per capita
- Over 89% fewer filings per capita in Alaska (0.63) compared to Tennessee (5.73)
- Over 65% fewer filings per capita in Minnesota (1.99) compared to Tennessee (5.73)
- Over 68% fewer filings per capita in Alaska (0.63) compared to Minnesota (1.99)
Comment
Tennessee sees almost 6 people in every 1000 file for bankruptcy. Residents are 3 times less likely to file for bankruptcy in Minnesota than in Tennessee.
Population
- Over 80% more people living in Tennessee (6,296,254) compared to Alaska (698,473)
- Over 86% fewer people living in Alaska (698,473) compared to Minnesota (5,266,214)
- Over 16% fewer people living in Minnesota (5,266,214) compared to Tennessee (6,296,254)
Comment
There are 16% more people living in Tennessee compared to Minnesota, yet residents are 3 times less likely to file for bankruptcy in Minnesota.
Income
According to httpss://en.wikipedia.org/wiki/List_of_U.S._states_by_income
Median household income by state:
- Alaska – $69,825
- Tennessee – $41,693
- Minnesota – $61,824
Alaska v Tennessee
Using a cost of living calculator https://money.cnn.com/calculator/pf/cost-of-living/ shows that someone earning $40,000 in Memphis, Tennessee needs over $61,000 to maintain the same standard of living in Anchorage, Alaska.
In Anchorage, Groceries cost 35% more, Housing costs 140% more, Utilities cost 9% more, Transportation costs 30% more and Healthcare costs 60% more compared to Memphis.
Comment
Someone in Tennessee needs over 50% more income to maintain their standard of living in Alaska.
Minnesota v Alaska
Someone earning $60,000 in Minneapolis, Minnesota needs over $73,000 to maintain the same standard of living in Anchorage, Alaska.
Groceries cost 16% more, Housing costs 46% more, Utilities cost 12% more, Transportation costs 7% more and Healthcare costs 34% more in Alaska compared to Minnesota.
Comment
Someone in Minnesota needs over 21% more income to maintain their standard of living in Alaska.
Minnesota v Tennessee
Someone earning $60,000 in Minneapolis, Minnesota needs just over $47,000 to maintain the same standard of living in Memphis, Tennessee.
Groceries cost 14% less, Housing costs 39% less, Transportation costs 17% less, Healthcare costs 16% less, and Utilities cost 3% more in Tennessee, compared to Minnesota.
Comment
Someone in Minnesota needs 21% less income to maintain their standard of living in Tennessee.
Conclusion
The cost of living is clearly much lower in Tennessee than in Alaska and Minnesota, but so is the average income.
Perhaps people in Tennessee are less likely to have savings to use when confronted with sudden expenses or unforeseen circumstances, which is why they are more likely to file for bankruptcy than people in other states, and the overall per capita bankruptcy rate.
