Bankruptcy Statistics

In the first three quarters of 2018 approximately 33000 people went bankrupt or started a Debt Relief Order in England & Wales. This is an increase of 10% compared to the same period in 2017.

• Bankruptcy statistics table
• Number of people going Bankrupt increases
• DRO volumes rise 12%

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Overall the total number of people declaring themselves insolvent (including IVAs) increased by 10% in the first three quarters of 2018 compared to the same period last year (from approx 74,500 to approximately 81,800).

Bankruptcy Statistics Table

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. 12,641 people used this debt solution in the first three quarters of 2018 compared to 11,542 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 the first three quarters of 2018 also increased by 10% compared to the same period in 2017.

DRO Volumes Rise 12%

20,562 people started a DRO in the first three quarters of 2018 compared to 18,359 in the same period in 2017. This is an increase of approximately 12%.

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 everyone 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.