Credit, Collections & Insolvency News
Latest monthly figures from the Insolvency Service for England & Wales showed that personal insolvencies decreased by 2% in August 2026 compared to the previous month, with 11,644 individuals entering insolvency in England and Wales. This was similar to July 2026 and 3% higher than in August 2025.
The personal insolvencies consisted of 725 bankruptcies, 3,880 debt relief orders (DROs) and 7,039 individual voluntary arrangements (IVAs).
The number of DROs made in August 2026 was similar to in July 2026 but lower than the average monthly numbers seen over the past 12 months. IVAs were lower than in July 2026 but were higher than average numbers seen over the past 12 months.
The 7,039 IVAs registered in August 2026 were 4% lower than in July 2026 but 8% higher than in August 2025. IVA numbers in the first eight months of 2026 were 14% higher than the 2025 monthly average.
Bankruptcies were 5% higher than in July 2026 and 14% higher than in August 2025. The number of bankruptcies in August 2026 was 725, which is 5% higher than in July 2026 and 14% higher than in August 2025. Since March 2026, the average monthly number of bankruptcies has been 14% higher than the 2025 monthly average.
There were 5,012 breathing spaces registered under the Debt Respite Scheme in August 2026. This is 32% lower than in August 2025. Of the 5,012 breathing space registrations, 4,871 were Standard breathing space registrations, and 141 were Mental Health breathing space registrations.
R3 President, Sonia Jordan, a Restructuring and Insolvency Partner at Knights, said, “For households with little financial resilience, increases in the cost of essentials like fuel, food and energy can quickly become unmanageable and this is reflected in the persistently high levels of personal insolvency we are seeing.
“Further pressures on household budgets lie ahead. Many homeowners coming to the end of fixed-rate mortgage deals and hoping rates would have dropped are instead facing higher monthly repayments. The Food and Drink Federation has warned that the drought and conflict in the Middle East could push food inflation to 6% next year, which will worry many individuals struggling with debt.”
New research from Aqua has revealed that almost two in five people (38.8%) typically run out of money before their next payday, while more than a quarter have money left over 28.2% of people have some money left over before their next payday, while 22.8% say their money usually lasts until payday. However, 38.8% find themselves…
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Households will have suffered a £2,400 financial hit, on average, from the Iran war by the end of 2027 according to new analysis by the Centre for Economics and Business Research (CEBR) calculating that there has been jump in inflation since the conflict began, and weaker wage growth, will knock £1,100 off the real income…
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New research from StepChange Debt Charity has revealed growing concern about household finances, with millions of people worried about how they will cope as energy costs are expected to rise ahead of winter. The data shows that two in five (41%) British adults, equivalent to around 22 million people, expect their finances to worsen over…
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Latest data from UK Finance has found that residential and buy-to-let mortgage arrears and possessions fell in Q2 2026. A total of 1,150 homeowner mortgaged properties were taken into possession, an 8% fall from the previous quarter and a 14% decrease compared with the same period a year earlier. There were 630 buy-to-let mortgaged properties…
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Middle income earners are increasingly falling into financial precarity, according to a report by lender Plend and investment specialist Triple Point, with 40% of those unable to cover a sudden £300 bill, the Financial Conduct Authority’s own benchmark for financial resilience, now earning above the national median salary. A third of UK adults (35%) are…
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