Thousands of women are choosing an Individual Voluntary Arrangement (IVA) over bankruptcy because of its stigma, a study has shown.

The study has managed to highlight the gender gap when it comes to insolvency. Despite many women being recommended bankruptcy by debt advisors, it would appear they would prefer to lodge an IVA instead.

The two many reasons women in the study said they chose an IVA over bankruptcy regardless of the recommendation of financial advisors was stigma associated with it and the costs involved.

The study also held less reputable firms responsible for women going against their best options trying the amount of incorrect advice given out about IVAs responsible for women going against their best option.

CCCS chairman Malcolm Hurlston said that bankruptcy was best for about 15% of the people they council.
"It will come as a surprise that we find more people should go bankrupt rather then fewer but once people are in severe financial difficulty, for whatever reason, it is in everybody's interest - theirs, lenders' and that of society - that they follow best advice,” Mr. Hurlston said.

"We are worried that stigma and cost are causing people - and women in particular - undue distress and we are now working on solutions with the Insolvency Service," he continued.

If you'd like to arrange an IVA or get free debt advice, click here.