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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 | |
| 2020 | 4,585 | 2,440 | 2,781 | 2,819 | 12,625 |
| 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 | 9,132 | 8,092 | 7,642 | 6,921 | 31,787 |
| 2011 | 12,539 | 11,101 | 9,578 | 8,658 | 41,876 |
| 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The big question is whether this trend will reverse when Government support is withdrawn.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.
| Qtr 1 | Qtr 2 | Qtr 3 | Qtr 4 | Total | |
| 2020 | 6,861 | 4,781 | 4465 | 4,223 | 20,321 |
| 2019 | 6,875 | 6,735 | 6,713 | 6,856 | 27,179 |
| 2018 | 6,478 | 6,959 | 6,923 | 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.
However not everyone can use this solution. 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.
