Did you know that divorce is often cited as the reason women go into bankruptcy? Did you know that the most common reasons for filing bankruptcy are different for men and women?
What Are the Most Common Reasons Men File Bankruptcy?
The most common reasons men go into bankruptcy are losing a job or a business failure. For women, the most common reasons are quite different.
What Are the Most Common Reasons Women File Bankruptcy?
The most common reasons women go into bankruptcy are the end of a relationship (divorce), loss of a partner’s income, or living beyond their means/overspending. Men are still more likely to file bankruptcy than women, but certain groups of women are particularly at risk for bankruptcy, and divorce is a catalyst according to statistics. It’s well known (and accepted) that debt can wreck a marriage, but getting divorced due to financial problems doesn’t end the financial tangle. It usually drives a couple deeper into debt – an often leads to bankruptcy.
Why Does Divorce So Often Lead to Bankruptcy?
When the cards are all laid on the table, there is rarely just one reason or one cause of bankruptcy. But there’s often a “last straw,” and in many cases, that last straw ends up being divorce. After divorce, single life looms. And not just dating, but suddenly carrying the responsibility for the bills on your own again. And while there may have been a time when surviving on ramen and dollar menu items was a norm you could carry off with aplomb, its rough to resize your life to suit a drastically limited budget immediately following a divorce.
Emotional Strain of Divorce Can Also Lead to Increased Debt:
The divorce process (and many other aspects of ending a long term relationship) are emotionally exhausting. This emotional drain does not make the financial adjustment from married life (often with two incomes and one shared set of household bills) to single life (usually with one or no income and separate household bills) any easier. Recently divorced women may be ready to downgrade their lifestyle from their married life to one more suitable to being single again, but it often comes at a cost – a high startup cost, that is. It may take some time to find a new place to live. Once you find it, you may need to dish out first and last month’s rent plus a security deposit. And that’s just the beginning.
Why Are Women More Financially Vulnerable After Divorce?
Women are often more financially vulnerable during (and following) divorce. Men are more likely to have a higher income (and higher debts), but women tend to be more disadvantaged when a couple goes their separate ways. Studies indicate that while close to 30% of women who file bankruptcy are divorced, only about 24% of men who file bankruptcy are divorced. Close to half of the women who filed bankruptcy had dependents (compared to about 34% of male bankruptcy filers), and 27% of women who file divorce are single parents (compared to only 8% of male bankruptcy petitioners). Women often have lower incomes and receive custody of their children in divorce – a combination that can mean managing finances may be a struggle.
No matter why you are considering bankruptcy, the law office of Kenneth C. Rannick P.C is ready to help you determine the best options in your situation. You don’t have to deal with the financial struggle alone. Bankruptcy can be an overwhelming process, but at the law offices of Kenneth C. Rannick P.C., you’ll work with Consumer Bankruptcy Specialists. We help relieve the stress, ensure all bankruptcy paperwork is appropriately filed, and work to expedite the bankruptcy process so you can get a fresh financial start.