Women in insolvency

Real insights from our Licensed Insolvency Trustees on debt, systemic barriers, and financial empowerment women face today

Ahead of International Women’s Day on March 8, we sat down with several of our Licensed Insolvency Trustees to discuss the financial challenges women face, the barriers they see in practice, and what financial empowerment really means.

Participants:

• Linda Paul, Licensed Insolvency Trustee
• Sandra Landry, Licensed Insolvency Trustee
• Melanie Fuller, Licensed Insolvency Trustee
• Caryl Newbery-Mitchell, Licensed Insolvency Trustee

From your perspective, are there financial challenges that women tend to face more often than men?

Sandra Landry
Women don’t necessarily face more financial challenges than men, but they often face different ones. Career interruptions, whether planned or unexpected, can have a significant financial impact. Taking time away from work to start or support a family can slow career progression and reduce income – potentially without financial support – at a time when existing debts still need to paid.

Caryl Newbery-Mitchell
We also see women not just supporting their children, but they may also be in a position where they’re supporting aging parents, as well. That “sandwich” role where they’re supporting everyone – not just financially – can make it more difficult to participate in the workforce or advance professionally.

What unique pressures do women in business or self-employed women encounter when it comes to managing debt and cash flow?

Linda Paul
Some women face barriers in accessing financing that their male counterparts may not encounter. I’ve heard anecdotal examples of women entrepreneurs who were treated differently by lenders – including being asked to bring in a spouse as a co-signer – despite already running viable businesses. While that may not be the case for every woman, it highlights that women can and do face added scrutiny or bias when seeking capital.

What advice would you give women who feel intimidated about taking the first step toward financial help?

Melanie Fuller
It’s important to find a professional you feel comfortable working with. Do your research, ask questions, and don’t hesitate to look elsewhere if that first interaction doesn’t feel right for you. You deserve to find someone who makes you feel comfortable in your unique situation.

Linda Paul
Debt literacy isn’t about judgement. Sometimes things don’t work out the way we’ve planned, financially. But having your finances in order isn’t necessarily a measure of success, it just means that you have your finances in order. There’s no shame in asking for help. We offer free consultations so people can get the information they need and decide what makes sense for them, without pressure.

How do systemic barriers (such as the gender pay gap or caregiving-related interruptions) show up in the financial situations you see?

Caryl Newbery-Mitchell
We do still see the effects of the gender pay gap in many households. Differences in income can influence who controls finances and how debt is perceived or assigned within a relationship. These dynamics often come to the surface when couples face financial stress.

Melanie Fuller
Pay gaps often become most visible during marital breakdowns. Women may leave relationships with lower income, higher debt, and greater difficulty securing financial stability. Support or equalization payments aren’t always reliable, which can create long-term challenges.

Sandra Landry
Depending on the province, sometimes the person owing that equalization payment files for insolvency and then those payments never materialize. This can significantly alter someone’s future plans and extend the number of years the need to work before retiring.

What does financial empowerment mean to you?

Sandra Landry
Financial empowerment is about having control over your own financial future. It means understanding where you stand, knowing your options, and not being reliant on someone else to ensure your financial security.

Linda Paul
Empowerment comes from education. If you have the tools to manage your finances, you’re better positioned to be able to provide for yourself and make informed decisions, even in difficult circumstances.

What is the first step women should take toward getting financial help and financial freedom?

Caryl Newbery-Mitchell
The first step is to make the call. Reach out to a Licensed Insolvency Trustee for unbiased advice on your situation, suggestions for next steps, and support for your unique situation. It can also help to talk things through with a trusted family member or friend, so you feel confident in your decisions.

Linda Paul
The initial call doesn’t commit you to any specific approach or outcome. There is so much information online, some is accurate and some isn’t, so speaking with a professional gives you the tools you need to make important decisions. Bankruptcy or Consumer Proposal aren’t the only solutions, and a professional can help you explore alternatives that may better for your needs.