WOMEN AND INSOLVENCY

Some interesting statistics have recently been published by the Insolvency Service and analysed by the Chair of R3, the trade association for insolvency practitioners, one of which relates to insolvency trends for women. The 2018 statistics show that just over 54% of insolvencies involved a woman - up from 30% in 2000.

Trends show that women are more likely to be economically disadvantaged than men, as they are more likely to be in part time employment, work in low paid sectors, and are more prone to becoming insolvent as a result of the breakdown of a relationship.

This year was the tenth anniversary of the Debt Relief Order (DRO). These are designed to be used by people with lower asset levels and a small amount of disposable income, which may make them a more attractive insolvency option for women. They are more common than bankruptcy but not as widely known. DROs are now established as an excellent tool to relieve financial problems for those who have insufficient income to propose a Voluntary Arrangement and for those who are unable to afford the costs of bankruptcy (currently £680)

As always, early advice with an insolvency professional will allow a debtor to have the options to utilise the most suitable insolvency procedure for their own particular circumstances.