Women Said More Apt to File for Bankruptcy

Women are resorting to personal bankruptcy more frequently than men and married couples, according to new data released by a Harvard law professor who specializes in bankruptcy.

As Congress debates legislation to make it harder for people to erase debts in bankruptcy, the new study being written by Elizabeth Warren, a widely quoted expert, will likely become fresh ammunition for opponents of the proposed restrictions.

But another bankruptcy expert voiced skepticism Monday, saying the study doesn’t appear to conclusively demonstrate a link between gender and bankruptcy.

“There’s not much there,” said Sam Gerdano, executive director of the American Bankruptcy Institute, a group of 6,400 attorneys, judges, bankers and professors that does not take positions on bankruptcy issues.

However, Gerdano acknowledged that divorce is a major factor in bankruptcy for men and women and that divorced women are more likely to have financial problems than other women.

Warren was traveling Monday and not available for an interview. Her data, first reported in Monday’s editions of USA Today and confirmed by a Harvard colleague, show that 39% of bankruptcy court filings in the 12 months ended March 31 were made by women. That compares with 28% for men and 33% for married couples, according to the study of filings in eight of the 94 federal bankruptcy districts.

The House, seeking to stop the increase in personal bankruptcies, last month passed a bill sought by credit card companies that would make it tougher for people to erase debts in bankruptcy court.

The Clinton administration has opposed the bill, which cleared the House by a veto-proof 313-108 margin--getting solid support from Republicans.

“We have concerns about the hardships that this bill will impose on many responsible lower- and middle-income debtors who are trying to get a fresh start,” White House spokesman Jake Siewert said Monday.

Parallel legislation, which is somewhat less stringent toward debtors, is pending in the Senate. Its chief author, Sen. Charles E. Grassley (R-Iowa), has been trying to work out compromises with opponents such as Sen. Edward M. Kennedy (D-Mass.).

Ellen Nissenbaum, legislative director for the liberal Center on Budget and Policy Priorities, said the legislation “seems to move the bankruptcy system in a much less balanced and equitable” direction. She said some changes are needed, but the legislation now before Congress goes too far.