July 29, 2010
Bankruptcy amongst British women has increased fivefold in 10 years and rapidly escalated in the past 12 months, new figures for the Insolvency Service have revealed.
The increase means that women now account for 40% of all the country’s personal bankruptcies, rising from 6,042 in 2000 to a staggering 29,680 in 2009.
In the last year alone, there was a 28% increase in female bankruptcies and younger women are particularly struggling to stay solvent during the current financial climate.
Those aged between 25 and 44-years old make up almost two-thirds of female bankruptcies, with 17,595 declaring themselves penniless last year, up from 13,575 in 2008.
"These figures show that more and more young women have levels of debt incurred through trying to maintain lifestyles that are unsustainable," says Graham Horne, Deputy Chief Executive of the Insolvency Service. "It is critical that all young people are aware of the impact that irresponsible spending can have. Filing for bankruptcy or obtaining a debt relief order should be viewed as a last resort."
Women’s rights groups have argued that mis-perceptions of female financial ‘illiteracy’ are way off the mark, claiming that women simply earn less and “have lower earning potential” than their male counterparts.
"When it comes to rising unemployment, women who lose their jobs are less likely than men to have savings, so they become dependent on benefits more quickly,” added Anna Bird, Head of Policy and Campaigns at the Fawcett Society.
As a knock-on effect, in-debted women are beginning to turn to debt relief orders (DROs) in their droves.
Introduced by the government in April 2009, DROs allow those with debts under £15,000, less than £300 in assets, and just £50 in monthly surplus income, to dodge creditor action as long as they undergo specific financial restrictions for 12 months.
For information of DROs and escaping mountains of debt, seek financial advice swiftly. In addition, if you feel your creditor’s actions are breaking financial regulations, legal advice could help keep unwanted bailiffs from your door.
