Personal insolvencies fell by 3% in October 2021

Latest figures from the Insolvency Service have indicated that Personal insolvencies fell by 3.0% to 9,668 in October 2021 compared to 9,966 in September 2021, and were 19.2% lower than October 2020’s figure of 11,960.

There were 601 bankruptcies were registered, which was 44% lower than October 2020 and 57% lower than October 2019. The number of bankruptcies was the lowest monthly number since the start of the time series in January 2019.

There were 1,937 Debt Relief Orders (DROs) in October 2021. Following changes to the eligibility criteria on 29th June 2021 including an increase in the level of debt at which people can apply for a DRO from £20,000 to £30,000, DRO numbers were higher between July and October 2021 than in previous months since the start of the Covid-19 pandemic. The number of DROs registered in October 2021 was 23% higher than October 2020 but remained lower than pre-pandemic levels (23% lower than in October 2019).

There were, on average, 7,031 IVAs registered per month in the three-month period ending October 2021, which is 14% higher than the three-month period ending October 2020 and 4% higher than the three-month period ending October 2019.

Between the launch of the Breathing Space scheme on 4th May 2021, and 31st October 2021, there were 32,082 registrations, comprised of 31,651 Standard breathing space registrations and 431 Mental Health breathing space registrations.

Commenting on the figures, Christina Fitzgerald, Deputy Vice President of insolvency and restructuring trade body R3, said “Looking at the personal insolvency figures, the month-on-month and year-on-year falls have been driven by a reduction in all types of procedure. The number of people entering a Breathing Space remains relatively consistent, which suggests there are still many people who are seeking help to resolve their financial issues.”

“From a personal finance perspective, the situation continues to be tough for people in England and Wales. Personal debts have increased, consumer confidence is low, and people are worried about their finances and the future of the economy.”

“These concerns have been heightened further by rising energy prices and increasing costs across the board, while the 1.1m people who were still being supported by the furlough scheme when it ended will have worried about the future of their jobs.”