Personal insolvencies fell by 12.7% in July

Latest monthly figures from the Insolvency Service for England & Wales have indicated that personal insolvencies decreased by 12.7% to 9,190 in July 2022 compared to 10,527 in June, and were 1.1% higher than July 2021’s figure of 9,090.

There were 531 bankruptcies registered, which was 16% lower than in July 2021 and 64% lower than July 2019.

The bankruptcies were made up of 461 debtor applications and 70 creditor petitions. Monthly bankruptcy numbers between July 2021 and July 2022 were lower than the numbers in 2020, which were already lower than pre-pandemic levels.

There were 1,835 Debt Relief Orders (DROs) in July 2022, which was similar to July 2021 but 23% lower than the pre-pandemic comparison month (July 2019).

There were, on average, 7,608 IVAs registered per month in the three-month period ending July 2022, which is 11% higher than the three-month period ending July 2021, and 4% higher than the three-month period ending July 2019. IVA numbers have ranged from around 6,300 to 7,800 per month over the past year.

There were 6,112 Breathing Space registrations in July 2022, which is 10% higher than the number registered in July 2021. 5,994 were Standard breathing space registrations, which is 10% higher than in July 2021, and 118 were Mental Health breathing space registrations, which is 34% higher than the number in July 2021.  Of the 6,112 Breathing Space registrations in July 2022:

Christina Fitzgerald, President of R3, said “On the personal insolvency side, the month-on-month fall shown in the figures published today was a result of a fall in Individual Voluntary Arrangements (IVAs) and Debt Relief Orders (DROs), although bankruptcy numbers increased by 7.9%.”

“Despite this, times are still tough for people in England and Wales. Household budgets are being stretched from all directions at the moment and many families are worried about how they are going to pay their bills. For most people, their income is the same but almost all outgoings have shot up, and this just won’t be sustainable for much longer.”

“With the average energy bill expected to hit £3,582 by October, as well as warnings from the Bank of England that inflation could soar to 13% or more this year, there is little respite in sight for millions of people across the UK – many of whom are already suffering from the impact of the pandemic.”