Personal insolvencies fall by 10%

Latest monthly figures from the Insolvency Service for England & Wales have indicated that personal insolvencies fell by 10% when compared to March 2026 but were 7% higher than in April 2025.

The data showed that 10,920 individuals entered insolvency in April 2026.

The insolvencies consisted of 701 bankruptcies, 4,033 debt relief orders (DROs) and 6,186 individual voluntary arrangements (IVAs).

There were 6,186 IVAs registered in April 2026, which was 11% lower than in March 2026 but 10% higher than in April 2025. 

In April 2026, there were 4,033 DROs. This is 9% lower than the record high number registered in March 2026.  The number of bankruptcies in April 2026 was 701, which is 2% higher than in March 2026 and 12% higher than in April 2025.

There were also 4,862 breathing spaces registered under the Debt Respite Scheme in April 2026. This is 33% lower than in April 2025. Of the 4,862 breathing space registrations, 4,736 were Standard breathing space registrations and 126 were Mental Health breathing space registrations.

Sonia Jordan, President of R3 and Partner at Knights, said “We have seen a welcome monthly decline in personal insolvencies which were down 10% in April, although numbers remain elevated by 7% on April 2025, reflecting the impact on households of higher fuel, energy and food costs. The number of debt relief orders (DROs) in April 2026 reached 4,033 and there were also 701 bankruptcies and 6,186 individual voluntary arrangements (IVAs).

“Recent research indicates that disposable incomes have fallen since the escalation of the Middle East conflict, with families in particular seeing a sharper reduction in the money they have left after essential spending. This is feeding through to reduced consumer spending and to increasing reliance on credit. When this becomes unsustainable, individuals can get into financial difficulty as reflected in levels of personal insolvency.

“In this environment, we are likely to see continued demand for professional advice from specialist R3 members. Seeking support at an early stage remains key to preserving options and achieving the best possible outcome, whether for businesses or individuals.”