Personal insolvencies rise by 4.1%

Latest monthly figures from the Insolvency Service for England & Wales have indicated that personal insolvencies increased by 4.1% to 9,572 in August 2022 compared to 9,198 in July, and were 5% higher than August 2021’s figure of 9,117.

Personal insolvencies also increased 7.4% from August 2019’s total of 8,910.

The figurse showed that there were 565 bankruptcies registered, 10% lower than in August 2021 and 58% lower than August 2019. The bankruptcies were made up of 491 debtor applications and 74 creditor petitions. Monthly bankruptcy numbers over the past year were lower than the numbers in 2020, which were already lower than pre-pandemic levels.

There were 1,932 Debt Relief Orders (DROs) in August 2022, which was 12% higher than August 2021 but similar to the pre-pandemic comparison month (August 2019).

There were, on average, 7,340 IVAs registered per month in the three-month period ending August 2022, which is 5% higher than the three-month period ending August 2021, and 8% higher than the three-month period ending August 2019. IVA numbers have ranged from around 6,300 to 7,800 per month over the past year.

There were 6,058 Breathing Space registrations in August 2022, which is 25% higher than the number registered in August 2021. 5,971 were Standard breathing space registrations, which is 25% higher than in August 2021, and 87 were Mental Health breathing space registrations, which is 30% higher than the number in August 2021.

Of the 6,058 Breathing Space registrations in August, 5,971 Standard breathing space registrations, which is 25% higher than the number in August 2021. There were 87 Mental Health breathing space registrations, which is 30% higher than the number in August 2021.

Commenting on the figures, Christina Fitzgerald, President of R3, said “Turning to personal insolvencies, the month-on-month increase has been driven by a rise in all forms of personal insolvency process as the economic issues the country is currently facing take a toll on people’s finances.”

“Right now, many people are worried about money, with the increasing costs of fuel, food and energy key concerns as wages lag behind inflation.”

“This concern about the cost of living is making many people reluctant to make major purchases and spend on anything other than the basics. Borrowing and credit card spending have also increased as people are, worryingly, turning to these to cover their costs.”