DebtOptions

• By 2009, women made up 40% of all bankruptcies

• The overall proportion of female bankrupts is rising throughout all regions of England and Wales

• Female bankrupts are on average younger than their male counterparts

• There is now a higher percentage of cases where the debts bankruptcy hearings are recognising are up to £20,000

Why Are More Women Entering Bankruptcy?

The media has certainly never been slow to report ‘celebrity’ women who have had financial problems. Their approach probably goes some way towards explaining the current somewhat ‘glossy’ representations of women experiencing financial problems. The recent rise in female bankruptcy is indeed being ‘packaged’ in some of the national press as the result of both ‘easy credit’ and trying to keep up with WAG-style ‘celebrity’ lifestyles.

A portrait of women under pressure to stay on top of the zeitgeist might well sell newspapers, but of course it’s not the reality of every woman struggling with debt. From our director’s long experience, we know there are always a multitude of very personal circumstances behind each and every bankruptcy.

What Can You Do If You Are Facing Debt Problems?

No matter what your circumstances, if you are concerned about insolvency:

a) Never ignore your debts - it typically makes the situation much worse

b) Contact us for calm, courteous debt advice tailored to your exact problems

Have a look at the information on our website about the different legal ways to end debt for good

A Brief Overview of Insolvency Solutions:

If you owe over £5,000 or more, Debt Management Plans are an informal agreement brokered on your behalf to allow you to repay a percentage of the debt in monthly instalments over a fixed time period.

IVAs apply for those in England & Wales and are typically used when £15,000 or more is owed to three or more creditors. They must be arranged by a licensed Insolvency Practitioner who will try to agree a manageable monthly repayment plan on your behalf. If agreed by creditors representing 75% or more of the total amount owed, they are legally binding on all creditors they cover. They stop demands for repayment, new interest and charges and fresh court action. If you keep to the terms and conditions, at the end of the agreement, all debts covered are written off even if they are not fully repaid. An IVA typically lasts 5 years or more. In Scotland, enquire about Trust Deeds, which share many of the same characteristics.

During bankruptcy proceedings, your assets would be taken away and sold to pay money towards your debts. Sequestration is the equivalent Scottish procedure. In both cases, there are a number of legal steps to complete and very important legal restrictions to adhere to. For this reason, whilst we advise all debt options require professional advice, this point cannot be emphasised enough for this route.

Just as there is no universal reason for insolvency, there is no single solution that is right in every case. In all circumstances, information on the internet can provide a basic overview but the next step if to gain expert advice which reflects the best options in your particular circumstances.