Personal insolvencies increase by 2%

Latest monthly figures from the Insolvency Service for England & Wales for May 2026 indicate that there were 11,223 personal insolvencies, 2% higher than April 2026 but 10% higher than in May 2025. Personal insolvencies  in May were 10,955. Personal insolvencies were 10% higher in May 2026 compared to the same month in 2025 when the figure was 10,246.

The insolvencies consisted of 656 bankruptcies, 4,191 debt relief orders (DROs) and 6,376 individual voluntary arrangements (IVAs). 

The number of bankruptcies in May 2026 was 656, which is 12% lower than in April 2026 but similar to May 2025. Bankruptcy numbers in May 2026 were slightly lower than the average in the past 12 months. Bankruptcies were 12% lower than in April 2026 but similar to May 2025.

There were 4,191 DROs. This is 4% higher than April 2026 but lower than the record high number registered in March 2026. Monthly numbers over the past two years have been higher than at any other point since their introduction, following the removal of a fee for entering a DRO in April 2024. DRO numbers in May 2026 were slightly higher than in April 2026 but lower than the record high seen in March 2026. The number of IVAs registered in May 2026 was also slightly higher than in April and similar to average numbers seen over the past 12 months.

The IVAs registered in May 2026 were 3% higher than in April 2026 and 12% higher than in May 2025. IVA numbers in the first five months of 2026 were higher than the 2025 monthly average.  IVAs were slightly higher than in April 2026, but were similar to average numbers seen over the past 12 months

There were 4,817 breathing spaces registered under the Debt Respite Scheme in May 2026. This is 38% lower than in May 2025. Of the 4,817 breathing space registrations, 4,693 were Standard breathing space registrations and 124 were Mental Health breathing space registrations. There were 4,817 Breathing Space registrations in May 2026. 

Sonia Jordan, President of R3 and Partner at Knights, said “Personal insolvencies rose slightly in May, increasing by 2% to 11,223 cases and remain 10% higher than in May 2025, reflecting the continued strain on household finances. The total included 4,191 debt relief orders (DROs), 656 bankruptcies and 6,376 individual voluntary arrangements (IVAs).

“Recent National Audit Office findings that household energy debt has more than doubled since 2021 highlight how essential costs are continuing to absorb a growing share of incomes. With the energy price cap set to rise in July, household budgets remain under intense pressure. This is leaving many people with limited financial resilience, increasing reliance on credit and insolvency as a last resort.

“In this climate, demand for qualified advice from R3 members remains high. Seeking support at an early stage can make a real difference to the options available and the outcomes achieved.”