Personal insolvencies increase by 1.8%

Latest monthly figures from the Insolvency Service for England & Wales have indicated that personal insolvency figures rose slightly in July when compared to last month and to July 2024.

Personal insolvencies increased by 1.8% in July 2025 to a total of 10,515 compared to June 2025’s total of 10,328, and slightly increased by 0.3% compared to July 2024’s figure of 10,479.

The personal insolvencies consisted of 599 bankruptcies, 4,001 debt relief orders (DROs) and 5,915 individual voluntary arrangements (IVAs). DRO numbers in July 2025 remained similar to the record high levels seen since April 2024. The number of IVAs registered in July 2025 was higher than in both June 2025 and July 2024. Bankruptcy numbers remained at about half of pre-2020 levels and were also 9% lower than in July 2024.

The number of bankruptcies in July 2025 was 599, which is 2% lower than in June 2025 and 9% lower than in July 2024. 

The 5,915 IVAs registered in July 2025 was 6% higher than in June 2025 and 4% higher than in July 2024.

There were 4,001 DROs. This is 3% lower than the number registered in June 2025 and July 2024 but 78% higher than the long-term (2015 to 2024) monthly average of 2,252. Monthly numbers between April 2024 and July 2025 were higher than at any other point since their introduction.

There were 8,400 breathing spaces registered under the Debt Respite Scheme in July 2025. This is 14% higher than in July 2024. Of the 8,400 breathing space registrations, 8,286 were Standard breathing space registrations and 114 were Mental Health breathing space registrations. Between the start of the scheme in May 2021 and 31 July 2025, StepChange Debt Charity registered 60% of breathing spaces.

Tom Russell, President of R3, the UK’s restructuring, turnaround and insolvency trade body, and a Licensed Insolvency Practitioner and Director at James Cowper Kreston, said “Turning to personal insolvencies, the slight yearly rise has been driven by an increase in Individual Voluntary Arrangements (IVAs), while Bankruptcies and Debt Relief Orders (DROs) have fallen over the same period. DROs remain consistently higher than before April 2024, following changes that removed the fee and made the process more accessible, suggesting that the large surge seen last year may now be beginning to ease slightly.

“Breathing Space registrations also increased by 14% compared to this time last year, reaching their highest level in more than three years. This points to a growing number of people seeking temporary respite from creditor action, allowing them time to assess their options and plan their next steps.

“For households, the main pressure continues to come from higher day-to-day expenses. Pay increases are often absorbed by everyday essentials, leaving little room for people to build savings or manage unexpected expenses. That lack of headroom is leaving people vulnerable to even small changes in their circumstances.
“While we have not seen large-scale job losses, unemployment remains a concern, having stabilised at a higher level than this time last year.

“People rarely enter a personal insolvency process immediately after losing work and many find work again relatively quickly, but for others a longer period of unemployment or having to take work at a reduced salary can lead to mounting debts over time, and so it may be several months before these pressures show up in the statistics, with the full impact likely to emerge into 2026.”