All your resources at your fingertips.Learn More
The Daily Telegraph have published an interesting article which highlights work undertaken by KPMG into the gender make up of bankruptcy. Mr Ian Cowie's article is entitled, "Are women more prudent than men?" It is noted that:
"New analysis of official figures from the Ministry of Justice shows that men who lose control of their financial affairs tend to go bankrupt for 60 per cent more than women. Now insolvency experts at accountants KPMG are posing the question; are women more prudent than men?
KPMG measured the divergence in ‘typical’ male and female bankrupts around the country. The most striking difference is the level of liability, with male bankrupts owing around £91,000 while females owe £56,000. The divergence is even more pronounced in particular regions, specifically the South East, which has the largest majority of male bankrupts at 63 per cent owing £100,000, while the remaining 37 per cent are female, owing £73,000.
The research also shows that female bankrupts tend to be slightly younger – by three years on average – but there is a difference of six years in the Midlands where male bankrupts are typically 43, while female bankrupts are 37. Chris Nutting, director of personal insolvency at KPMG, said: “As someone with 40 years of experience of advising people with heavy personal debt burdens it has always been apparent that more men end up in extreme financial difficulties.
“Without being an expert in the differences in the behavioural patterns of men and women, it is difficult to pinpoint exactly why men are more likely to get into financial distress and to a greater degree. The data certainly poses interesting questions; such as are women more financially prudent and does this reflect the higher earning potential of men?”
The article is followed by some interesting thoughts in the comments section. The research highlights an interesting trend. However, there are of course exceptions to the rule.
"This is the ultimate statement of where the law on IVAs is to be found in our great common law...