Record insolvencies for women

09/09/2011

The proportion of women being made insolvent or declaring themselves bankrupt has reached record levels.

The squeeze on women as a result of the recession is significant, with one in four women surveyed revealing that they had to delay or reconsider their plans to have a baby after the economic downturn.

Accountancy firm RSM Tenon found that in Q2 14,827 women were declared bankrupt, obtained a debt relief order or took out an individual voluntary arrangement. This means that women now account for 48 per cent of persona insolvencies, the highest percentage since the company started recording their figures in 2007.

Mark Sands, head or personal insolvency at RSM Tenon told the Guardian: “People blame female money troubles on almost everything from a culture of consumption to alleged ‘bankruptcy role models such as Kerry Katona. However, the picture is more complicated than that.”

He added: “In the early part of the recession, more women than men were made redundant, and some studies have claimed that government spending cuts instituted during the recovery period have a disproportionate effect on single parents – nine out of ten of whom are female. Also, more women than men work part time, and in a downturn part time and shift workers are more likely to be cut.”

Tags; Income Worries and Debt, Debt Management and Banking, Budgeting Advice,

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