Summary
In recent years bankruptcies concerning females have increased severely. This article looks at the patternsand investigates the reasons.
While interest has focused on prestigious business bankruptcies like that of Cleggs, new figures revealedby the Insolvency Service show scores of individuals are going bust – and many of them are female
In the last five years bankruptcies among ladies have risen as much as 400%. In fact they now make up 40% of all bankruptcies with young ladies below the age of 30 most prone to experience financial collapse.
The figures from the Bankruptcy Service revealed that last year 23,176 women were declared bankrupt, up from only 6,641 in 2004. With men the figure was 37,975, that’s roughly 230 per cent higher than the 15,745 which were declared broke in 2004.
This signifies that 7 years ago ladies made up 30 per cent of bankrupts, but by last year that had escalated to 38 per cent.
In general, individuals aged between 30 and 39 are most likely to go bust. But with ladies it’s the youngsters that are possiblymost at risk, the 25 tothirty five years of age.
The swift rise of female bankruptcy is may be related to both overspending when applying for a loan too easy and their enhanced exposure due to the growing numbers of young people who don’t have family support and marriage. It is apparent that more females are running up uncontrollable debts as they attempt to maintain opulent lifestyles. They want to spend like Paris Hilton but evidently do not have the income to repay the loans they run up. It is hard as they increasingly have to borrow more to get a mortgage and if they live alone, there’s no one else to contribute to the financial burden.
Overall, some specialist financial advisers consider that insolvencyamong ladies would sooner or later correspond with levels amongst men.
However assumptions by Ministers of Parliament, that ladies are predominantly open to being made redundant were shown to be incorrect by the Office for National Statistics last month. It said insolvency amongst women is running at at half the rate of males, and more women are protected as a large percentage of them are Government workers.
But the rise in ladies bankruptcy suggest that females are distressed for reasons over and above cuts in employment and income. Social studies have frequently confirmed that divorce leaves males better off than females, mainly because females more often than not take the children.
But if a cohabiting couplesplit up, the gentleman has no financial obligation to the lady. And between 3 and 4 million Britons live together.
And a accruing percentage of women have choosen to remain on their own either to follow careers that may now be suspect, or owing to a benefit system that rewards single mothers but penalises couples.
Many of us get into financial trouble from time to time and a lot of us rely on our relatives to help us out. These insolvencies amongst ladies are an outcome of too manywomen being alone without financial support.
