And the wealth gap is also large for households headed by young adults without a bachelor's degree: Those with no student debt have accumulated roughly nine times as much wealth
as debtor households ($ 10,900 vs. $ 1,200).
Not exact matches
Using the conventional total debt - to - income ratio, where debt is measured
as a share of income, college - educated student
debtors are by far the most indebted.2 The median college - educated student
debtor has total debt equal to about two years» worth of
household income (205 %).
If a
debtor has sufficient income to pay necessary
household expenses, and still have money left over, Section 707 (b) of the Bankruptcy Code could be used to have the case dismissed
as «abusive.»
For purposes of the means test, the U.S. Bankruptcy Code defines current monthly income
as including: «any amount paid by any entity other than the
debtor (or in a joint case the
debtor and the
debtor's spouse), on a regular basis for the
household expenses of the
debtor or the
debtor's dependents (and in a joint case the
debtor's spouse if not otherwise a dependent)...» Benefits received under the Social Security Act, payments to victims of war crimes or crimes against humanity on account of their status
as victims of such crimes, and payments to victims of international terrorism or domestic terrorism on account of their status
as victims of such terrorism are excluded from the means test.
Insolvent
debtors with a
household income above the government mandated thresholds limits are more likely to choose a consumer proposal
as an alternative to bankruptcy in order to spread potential surplus income payments over a period of up to five years.
Among young
households headed by a college graduate, those with student debt are more likely than non-student
debtors to have outstanding vehicle debt (43 % vs. 27 %), significantly more likely to have credit card debt (60 % vs. 39 %), and just
as likely to have housing - related debt (56 %).
Younger
households tend to be more highly leveraged than older
households, and student
debtor households tend to be more leveraged than
households that do not owe student debt.5 Among the young and college - educated, student
debtor households are nearly twice
as leveraged
as their counterparts lacking student debt — 67 % vs. 34 %.
Using the conventional total debt - to - income ratio, where debt is measured
as a share of income, college - educated student
debtors are by far the most indebted.2 The median college - educated student
debtor has total debt equal to about two years» worth of
household income (205 %).
Among young
households whose heads lack at least a bachelor's degree, student
debtors are more likely than those without student debt to owe on vehicle loans, credit card debt and other types of debt and are just
as likely to have a mortgage and other installment debt.
A «student
debtor» refers to a
household owing outstanding education - related installment debt and includes loans that are currently in deferment
as well
as loans in their scheduled repayment period.