The number of women entering insolvency procedures jumped from 30% to 54.3% between 2000 and 2018, according to new figures released by the Insolvency Service.
The figures reveal that women aged between 25 and 34-years-old were the group with the highest rate of personal insolvency. This demographic was followed by women aged 35 to 44-years old, and males aged 35 to 44.
An increasing number of women across the United Kingdom have discovered the many and enduring benefits of insolvency. Clearly, they are learning how to empower themselves with formal insolvency procedures, particularly during a divorce or separation.
For example, a woman may decide to separate from a partner with whom she shares expenses such as a joint and several loan agreement. By entering an insolvency procedure, she can avoid paying for her partner’s debts.
More women enter insolvency
Women leading statutory and informal insolvency procedures is a trend that will probably continue as females gain greater independence through self-employment.
Furthermore, the rapid developments in technology encourage more people to start their own business. And if their businesses fail they can simply enter an Individual Voluntary Arrangement, a Debt Relief Order or Bankruptcy.
The Insolvency Service’s most recent statistics support this theory. According to their figures, between 2017 and 2018 the number of IVAs rose by 20%; DROs increased 11%; and Bankruptcies went up 10%.
Since their introduction in 2009, Debt Relief Orders have become increasingly popular because they provide a simpler and more cost-effective alternative to IVAs and Bankruptcy.
For example, whereas a Debtor’s Bankruptcy Petition costs £680; an individual with assets of less than £1,000 and debts under £20,000 can enter a DRO for just £90.