Men and Women Have Different Reasons for Seeking Bankruptcy Protection
Posted: July 15, 2016 by Jeffrey J. Randa
Bankruptcies occur among people of both genders. However, men are more likely than women to go bankrupt. One study of bankruptcies over the course of 2014 found that 60 percent of the debtors who went bankrupt were male compared with 40 percent of the debtors who were female. However, the number of bankruptcies among women has been rising over the course of the past decade, as women have become increasingly more likely to be both business owners and primary breadwinners.
While people of both genders can get relief from declaring bankruptcy, there are often different reasons why men and women are likely to need that relief. A Sterling Heights bankruptcy attorney can provide help to men and women regardless of the specific reasons for their decision to file for bankruptcy protection.
A Look at the Different Reasons
When reviewing bankruptcy statistics, profound differences emerge when considering the reasons why men go bankrupt as compared to why women go bankrupt. For example, men are more likely to seek bankruptcy relief when a business fails or as a result of the loss of a job. Women, on the other hand, are more likely to go bankrupt as a result of living beyond their means, as a result of losing a partner’s income, and as a result of a relationship breaking down.
According to the Financial Times, an assessment was conducted of 20,000 bankruptcies that were recorded over the course of 2014. The study revealed that 1,420 of the women who went bankrupt over the course of the year had to seek bankruptcy relief because their relationships had ended. By contrast, the most common reason for bankruptcy among men was a job loss. Losing a job accounted for 1,275 bankruptcies among men. Job loss was the cause of only 640 bankruptcies for women over the course of that same year.
While the study could be used to suggest that women are more likely to overspend than men because they declare bankruptcy based on overspending at higher rates, financial experts believe that there may be other factors at play. For instance, women generally tend to have lower incomes and lower levels of assets than men, which makes it harder for them to live within their means and more likely that overspending could lead to bankruptcy.
Knowing the common causes of bankruptcy among men and women can work to help you protect yourself. Women, for example, may wish to try to maintain some separate financial accounts in case of a relationship breakdown. Unfortunately, there are many things, like job loss, that are beyond your control.
If you find yourself in financial trouble, you should realize you are not alone and that thousands of men and women just like you have sought relief through bankruptcy. When you are ready to take an important step towards resolving your debt problems permanently, consider contacting a bankruptcy lawyer in Sterling Heights to find out what options you have for getting debt relief.