Personal insolvencies increase by 12%

Latest monthly figures from the Insolvency Service for England & Wales have indicated that personal insolvencies decreased by 12% in November 2025 to a total of 9,343 compared to the October 2025 figure of 10,612. 

The Insolvency Service moved to a new case management system on 1st  November 2025. As a result, there was a controlled introduction of the new system, which necessitated a reduction in processing volumes while case management activity recommenced. Accordingly, there was a temporary backlog of individual voluntary arrangements agreed in November 2025 that were not yet registered by month’s end. Debtor bankruptcy orders were also made in a slower timeframe than normal (although still within statutory requirements). Therefore, numbers reported for these insolvency types for November do not reflect the total number of individuals applying for these insolvency solutions in that month.

There were 5,062 IVAs registered in November 2025, which was 17% lower than in October 2025 and 12% lower than in November 2024. There were 3,792 DROs. This is 1% lower than the number registered in October 2025. 

The number of bankruptcies in November 2025 was 489, which is 25% lower than in October 2025 and 20% lower than in November 2024. 

There were 7,151 breathing spaces registered under the Debt Respite Scheme in November 2025. This is 7% lower than in November 2024. Of the 7,151 breathing space registrations, 7,009 were Standard breathing space registrations and 142 were Mental Health breathing space registrations.

Tom Russell, R3 President, said “Personal insolvency rates have also declined by 12% although debt relief orders remain at historically high levels. However, the Insolvency Service notes that there is a backlog of cases caused by a change in its case management system, so we will need to wait to see the true picture.

“It’s common for people to increasingly rely on consumer credit during the festive season, and this can place households under strain. It is often not until the spring that people fully realise whether their spending was affordable which may result in rises in personal insolvencies next year. While falling mortgage rates may eventually support household spending, many consumers will be locked into fixed deals and will have less disposable income, which in turn affects businesses.”