Personal insolvencies fall by 4%

Latest monthly figures from the Insolvency Service for England & Wales have indicated that personal insolvencies decreased by 4% in October 2025 to a total of 10,552 individuals.

The figures were 4% lower than in September 2025 and 14% higher than in October 2024.

The insolvencies consisted of 599 bankruptcies, 3,846 debt relief orders (DROs) and 6,107 individual voluntary arrangements (IVAs). D

The 3,846 DROs registered in October 2025 were 71% higher than the long-term (2015 to 2024) monthly average of 2,252, although below the record high of 4,196 seen in August 2025. DRO numbers have been at record-high monthly numbers since the abolition of the upfront £90 fee in April 2024, with the 46,063 DROs in the past 12 months being nearly twice as high as the long-term annual average.

The 6,107 IVAs registered in October 2025 were 5% lower than in September 2025 and 23% higher than in October 2024. IVA numbers in the first 10 months of 2025 were higher than the monthly average seen in both 2024 and 2023, but lower than in 2022, which saw a record high annual number.

The number of bankruptcies in October 2025 was 599, which is 7% lower than in September 2025 and 2% lower than in October 2024. Bankruptcy numbers have declined since 2009 and fell further during the COVID-19 pandemic. Numbers remain much lower than the long-term (2015 to 2024) monthly average of 1,023.

There were 7,701 breathing spaces registered under the Debt Respite Scheme in October 2025. This is 1% lower than in October 2024. Of the 7,701 breathing space registrations, 7,571 were Standard breathing space registrations and 130 were Mental Health breathing space registrations. Between the start of the scheme in May 2021 and 31 October 2025, StepChange Debt Charity registered 59% of breathing spaces.

Tom Russell, a licensed insolvency practitioner and director at James Cowper Kreston, said “Personal insolvency rates, while slightly down in October, compared to the previous month but increased compared to the previous two years. With one in 403 adults in England and Wales entering insolvency over the past year compared to one in 427 in the year to October 2024, the continued pressure of high living costs are all too evident. Debt Relief Orders were lower than the record levels seen in August 2025 but remain historically high, while Individual Voluntary Arrangements have also risen on average compared to the first half of this year.

“Cost of living pressures continue to weigh heavily on households, with inflation still high and essentials such as food and energy remaining expensive. Many people struggling to cover day-to-day expenses have few options beyond taking on unsustainable levels of debt.

“Another factor is the recently passed Renters Rights Bill, which, while providing welcome protections for tenants, may also increase regulatory costs for landlords, potentially leading to higher rents. With tenants already spending over a third of their income on rent on average, any rise could directly impact future personal insolvency rates.