Commenting on the latest figures from the Insolvency Service which provide further analysis on individual insolvencies in 2015, Mark Sands, personal insolvency partner at RSM said:
‘The good news is that individual insolvencies are falling and have been for the last seven years.
'Although the Bank of England surprised the markets this week with a decision to keep interest rates on hold, they are still at record low levels and have been since early 2009. It is clearly a very benign environment for borrowers and far fewer people are getting into difficulty than they were during the financial crisis.
‘However, one recent trend is worthy of note. In 2014, for the first time, more women than men entered into some kind of formal insolvency process. The latest statistics for 2015 show that this wasn’t just a blip. Once again, a higher proportion of women than men went into an insolvency process - 18.2 women per 10,000 adults as opposed to 16.9 for men.
'It’s not clear from these figures exactly why this is the case. A number of social and economic factors could be at play here – a difference in living costs, an imbalance in pay between the genders, and the impact of women taking time out of work to have children could all play a role. What’s interesting is that there is a far higher proportion of women entering into Debt Relief Orders (DROs) than men, while more men than women go bankrupt. As DROs are available to those with smaller debts (totalling less than £20,000) this could indicate that women are more inclined to tackle problem debt at an earlier stage than men.’