You are here: Home - Credit Cards & Loans - News -

Revealed: the most common reasons for bankruptcy

Written by: Paloma Kubiak
People living beyond their means and relationship breakdowns are the two main reasons people file for bankruptcy, according to data.

Figures from The Insolvency Service show there was a total of 48,880 bankruptcy applications made in England and Wales between April 2014 and March 2018.

There were 25,690 court-based petitions, and 23,190 made online via the government site – the Office of the Adjudicator.

Looking at the reasons behind the bankruptcy orders, 8,280 were due to living beyond their means, 7,270 cited a relationship breakdown and 5,720 blamed a reduced income.

Loss of employment was a reason given by 4,970 applicants, illness and accident was cited by 4,590, and the failure of a new venture was behind 1,390.

Total secured and unsecured debt figures showed that more people owed between £20,001 and £30,000 than any other debt bracket (10,570 applicants). However, 3,410 people were made bankrupt as they owed over £250,000.

Based on age, 20 people aged between 16 and 20 applied for bankruptcy, while 1,060 in the over 70s age bracket made a bankruptcy order. The largest number of bankruptcies were made by those aged 36-50.

By gender, 22,170 women were made bankrupt, split between 11,870 court-based applications and 10,300 via the government website. The number of males made bankrupt stood at a higher 27,620, including 13,730 court-based applications and 12,880 via the Office of the Adjudicator.

Related: See’s guide on bankruptcy and Over 55s facing bankruptcy won’t need to hand over undrawn pension funds for more information.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Autumn Statement: Everything you need to know at a glance

Yesterday Chancellor Jeremy Hunt made his first fiscal statement in the role, outlining a range of tax measure...

End of Help to Buy: 10 alternatives for first-time buyers

The deadline for Help to Buy Equity Loan applications passed on 31 October. If you’re a first-time buyer who...

Moving to an energy prepayment meter: Everything you need to know

As households struggle with the soaring cost of energy, tens of thousands of billpayers are expected to move o...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week