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During 2020 there was a 25% reduction in people going bankrupt (compared to 2019). There was a similar reduction in the number of people starting a Debt Relief Order
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In 2020 just under 33,000 people in total went bankrupt or started a Debt Relief Order in England & Wales. This was a 25% reduction compared to 2019 where the number was just under 44,000.
| Qtr 1 | Qtr 2 | Qtr 3 | Qtr 4 | Total | |
| 2021 | 2,801 | 2,289 | 5,090 | ||
| 2020 | 4,585 | 2,441 | 2,784 | 2,844 | 12,654 |
| 2019 | 4,469 | 4,235 | 4,178 | 3,860 | 16,742 |
| 2018 | 4,348 | 4,108 | 4,208 | 3,940 | 16,640 |
| 2017 | 4,083 | 3,722 | 3,737 | 3,563 | 15,105 |
| 2016 | 3,775 | 3,709 | 3,936 | 3,624 | 15,044 |
| 2015 | 4,404 | 3,975 | 3,896 | 3,570 | 15,845 |
| 2014 | 5,681 | 5,475 | 4,907 | 4,282 | 20,345 |
| 2013 | 6,673 | 6,480 | 6,009 | 5,409 | 24,571 |
| 2012 | 8,132 | 8,092 | 7,642 | 6,921 | 31,787 |
| 2011 | 11,965 | 11,107 | 9,714 | 9,142 | 41,928 |
| 2010 | 18,256 | 14,982 | 13,907 | 12,028 | 59,173 |
| 2009 | 20,446 | 18,870 | 18,347 | 17,007 | 74,670 |
Source: The Insolvency Service Official Statistics
The numbers of people going bankrupt was rising during 2018 and 19 compared to previous years. However in 2020 there was a dramatic fall.
The most plausible explanation for this is Covid 19 and the associated Government support. Any drop in individual incomes due to furlough seems to have been more than offset by the access to financial assistance schemes such as mortgage and loan payment holidays.
The big question is whether this trend will reverse when Government support is withdrawn. Job losses and unemployment may start to increase once this happens (as some are predicting). If so, the number of people in need of assistance with their debt may well begin to rise again.
Currently in 2021 it seems that a similar number of people are going bankrupt as did in 2020. However, it will be some time before any realistic analysis can be undertaken given the furlough scheme is not due to finish until the end of September 2021.
| Qtr 1 | Qtr 2 | Qtr 3 | Qtr 4 | Total | |
| 2021 | 4,161 | 4,367 | 8,528 | ||
| 2020 | 6,916 | 4,820 | 4,489 | 4,244 | 20,469 |
| 2019 | 6,946 | 6,796 | 6,788 | 6,937 | 27,476 |
| 2018 | 6,478 | 6,959 | 6,924 | 7,061 | 27,421 |
| 2017 | 6,119 | 6,146 | 6,274 | 6,355 | 24,894 |
| 2016 | 6,722 | 6,741 | 6,490 | 6,243 | 26,196 |
| 2015 | 6,213 | 5,832 | 5,629 | 6,501 | 24,175 |
| 2014 | 6,549 | 7,006 | 6,808 | 6,325 | 26,688 |
| 2013 | 7,219 | 7,132 | 6,632 | 6,563 | 27,546 |
| 2012 | 7,897 | 7,956 | 7,777 | 7,549 | 31,179 |
| 2011 | 6,788 | 7,258 | 7,604 | 7,359 | 29,009 |
| 2010 | 5,644 | 6,295 | 7,068 | 6,172 | 25,179 |
| 2009 | 0 | 1,978 | 4,505 | 5,348 | 11,831 |
Source: The Insolvency Service Official Statistics
In 2020, approximately 25% less people started a Debt Relief Order (DRO) than in 2019.
As with bankruptcy, this is a direct result of the financial assistance from Government and financial institutions due to the coronavirus pandemic.
The number of people who carry out a DRO in any particular quarter is traditionally higher than the number going bankrupt. It is far a cheaper solution to implement.
The relatively strict qualification criteria for a DRO will be relaxed at the end of June 2021. This may lead to an increase in the number of people using this solution as it becomes more accessible.
It is still too soon to say whether the relaxation of the DRO qualification criteria from 1st July 2021 will lead to a significant increase in the number of people using this solution.
