Personal insolvencies fall by 3%

Latest monthly figures from the Insolvency Service for England & Wales have indicated that personal insolvencies decreased by 3% in September 2025 to a total of 11,101 compared to the August 2025 figure of 11,387 and increased by 7% compared to the September 2024 figure of 10,401.

The personal insolvencies consisted of 622 bankruptcies, 3,985 debt relief orders (DROs) and 6,494 individual voluntary arrangements (IVAs). DRO numbers in September 2025 were lower than the record high seen in August 2025, but remain at the historically high levels seen over the past 18 months. The number of IVAs registered in September 2025 was higher than the average monthly number seen in the first half of 2025. Bankruptcy numbers remained at about half of pre-2020 levels but were 9% higher than in September 2024.

The 3,985 DROs registered in September 2025 were 5% lower than the record high seen in August 2025. The number of DROs in September 2025 was 77% higher than the long-term (2015 to 2024) monthly average of 2,252.

The 6,494 IVAs registered in September 2025 was 1% lower than in August 2025 and 9% higher than in September 2024. IVA numbers in the first nine 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 September 2025 was 622, which is 1% lower than in August 2025 but 9% higher than in September 2024. 

There were 7,684 breathing spaces registered under the Debt Respite Scheme in September 2025. This is 12% higher than in September 2024. Of the 7,684 breathing space registrations, 7,589 were Standard breathing space registrations and 95 were Mental Health breathing space registrations. Between the start of the scheme in May 2021 and 30 September 2025, StepChange Debt Charity registered 59% of breathing spaces.

Commenting on the publication of the September 2025 monthly insolvency statistics for England and Wales, Tom Russell, President of R3, the UK’s restructuring, turnaround and insolvency trade body, said “While personal insolvency rates have also slightly decreased in September, the figures are significantly up on September 2023 reflecting the continued pressure of high living costs. Debt relief order numbers in September 2025 were lower than the record high seen in August 2025 but remain at historically high levels. There has also been an increase in the average number of Individual Voluntary Arrangements compared to the first half of 2025.

“This reflects more households being unable to meet basic expenses and having few other options for addressing their debts. With wage growth slowing, food prices remaining high and bills increasing, these challenges are unlikely to ease over the autumn months.

“As Black Friday approaches, there is also a risk that some consumers will turn to ‘buy now pay later’ credit options to manage spending, potentially adding to already unsustainable debt levels.”