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Bankruptcy Statistics
In 2018 just over 44,000 people went bankrupt or started a Debt Relief Order in England & Wales. This is an increase of 10% compared to 2017.
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Overall the total number of people declaring themselves insolvent in 2018 (including IVAs) increased by 16% compared to 2017 (from 99,219 to 115,299).
Bankruptcy Statistics Table
| Qtr 1 | Qtr 2 | Qtr 3 | Qtr 4 | Total | Grand Total | |
| 2019 | 4,452 6,946 | 4,222 6,795 | 4,143 6,786 | 12,817 20,527 | 33,344 | |
| 2018 | 4,345 6,544 | 4,107 7,021 | 4,209 6,997 | 3,941 7,121 | 16,602 27,683 | 44,285 |
| 2017 | 4,083 6,119 | 3,722 6,146 | 3,737 6,274 | 3,563 6,355 | 15,105 24,894 | 39,999 |
| 2016 | 3,775 6,722 | 3,709 6,741 | 3,936 6,490 | 3,624 6,243 | 15,044 26,196 | 41,240 |
| 2015 | 4,404 6,213 | 3,975 5,832 | 3,896 5,629 | 3,570 6,501 | 15,845 24,175 | 40,020 |
| 2014 | 5,681 6,549 | 5,475 7,006 | 4,907 6,808 | 4,282 6,325 | 20,345 26,688 | 47,033 |
| 2013 | 6,673 7,219 | 6,480 7,132 | 6,009 6,632 | 5,409 6,563 | 24,571 27,546 | 52,117 |
| 2012 | 9,132 7,897 | 8,092 7,956 | 7,642 7,777 | 6,921 7,549 | 31,787 31,179 | 62,966 |
| 2011 | 12,539 6,788 | 11,101 7,258 | 9,578 7,604 | 8,658 7,359 | 41,876 29,009 | 70,885 |
| 2010 | 18,256 5,644 | 14,982 6,295 | 13,907 7,068 | 12,028 6,172 | 59,173 25,179 | 84,352 |
| 2009 | 20,446 | 18,870 1,978 | 18,347 4,505 | 17,007 5,348 | 74,670 11,831 | 86,501 |
Source: The Insolvency Service Official Statistics (Not Seasonally Adjusted)
Note: Figures in red are Debt Relief Orders
Number of People Going Bankrupt Increases
The number of people going bankrupt in England and Wales is on the rise. 16,602 people used this debt solution in 2018 compared to 15,105 in the same period last year. This is an increase of around 10%
Starting in 2016 there has been a generally accepted squeeze on personal finances as a result of inflation growing faster than wages. There now seems to be a growing correlation between this reality and individual financial difficulty.
Although employment is currently at record highs more and more people are having difficulty paying their bills. The most likely reason for this is that the jobs created in recent years are primarily lower paid or based on zero hour contracts and so insufficient to sustain family expenditure requirements.
The number of people starting an IVA in 2018 increased by 20% compared to 2017.
DRO Volumes Rise 11% in 2018
27,683 people started a DRO in 2018 compared to 24,894 in 2017. This is an increase of approximately 11%.
The reasons for the increasing numbers are likely the same as those for Bankruptcy described above. More and more people are simply struggling to pay their debts (even though they are employed) because the wages they are earning are low.
The number of people who carry out a DRO in any particular quarter is traditionally higher than the number going bankrupt as it is a cheaper solution to implement. However there are strict qualification criteria which prevent many people from using this solution.
A DRO is only possible if your total debt is £20,000 or less, you are not home owner, your car is worth less than £1000 and your surplus income is less than £50/mth.
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