Assessing the Gender Gap in Consumer Bankruptcy

Is there a gender gap when it comes to consumer bankruptcy in Oak Park? When we talk about the gender gap, we often are referring to the gender pay gap. According to the American Association of University Women (AAUW), women are paid, on average, less than men for doing the same or similar work. While the AAUW underscores that the gender pay gap has narrowed since the 1970s, it remains salient across the United States. In Illinois in particular, the AAUW reports that women only earn on average 79% of the salary of their male counterparts. That number is lower than the national average of 80%, meaning that there is an even wider gender pay gap in Illinois than in other parts of the country.
Does the gender pay gap also lead to a gender gap in bankruptcy filings? According to a report in the Financial Times, it might.
Different Reasons for Bankruptcy Between Men and Women
If women earn less on average than men for doing the same work, are they also more likely to have difficulty with personal finances? Certainly, according to the report, “the bankruptcy figures show that traditional differences between men’s and women’s roles in the economy persist.” Just how likely are those differences to result in different rates of bankruptcy?
Most often, the report suggests, men and women file for bankruptcy for different reasons, and the gender pay gap may play a role. Men most frequently file for bankruptcy because of “job loss and business failure,” while women most often file for bankruptcy due to “the breakdown of a relationship, living beyond their means, and the loss of a partner’s income.” These reasons for bankruptcy seem to suggest that the fact that women earn less money on average than men could result in some women having difficulty making ends meet and thus filing for bankruptcy. At the same time, however, more men than women file for bankruptcy.
Do Men File for Bankruptcy More Often Than Women?
When the report was issued a couple of years ago, about 60% of consumer bankruptcies were filed by men, while only about 40% were filed by women. That “gap”—distinct from the gender pay gap—has gotten narrower in the last two years. The most common reason that women filed for bankruptcy was divorce, and that resulted in about 20% of all bankruptcies filed by women.
If women are paid less than men, why do more men file for bankruptcy? The report suggests that women may turn to alternative options more frequently than men, such as credit consolidation and credit counseling. At the same time, the fact that men often file for bankruptcy due to a business failure could highlight the fact that, due to persistent gender inequality, men start small businesses more often than women.
Contact an Oak Park Consumer Bankruptcy Attorney
Are you thinking about filing for personal bankruptcy? Do you have questions about using bankruptcy to avoid foreclosure or to help get your finances back on track? An experienced Oak Park bankruptcy lawyer can help. A dedicated advocate at Emerson Law Firm can speak with you today about your situation. Contact us to learn more about the services we provide to clients in Oak Park and throughout the Chicago area.
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