Using the 2007-2009 panel Survey of Consumer Finances (SCF), we explore whether the prevailing wisdom on the determinants of bankruptcy can hold its ground in the wake of a systemic downturn in the U.S. economy. We review the literature on the main causes of filing for personal bankruptcy, then test the relative importance of these causes in a logistic regression framework. Preliminary results suggest that, among demographic characteristics of individuals in the SCF, being younger than 35 is the only factor statistically significantly associated with a lower likelihood of filing for bankruptcy. Further analyses will consider additional possible determinants.
