Personal insolvencies increase by 7.9%

Latest monthly figures from the Insolvency Service for England & Wales have indicated that personal insolvency figures increased by 7.9% in April 2025 to a total of 10,012 compared to March 2025’s total of 9,282, and increased by 4.4% compared to April 2024’s total of 9,586.

The personal insolvencies consisted of 589 bankruptcies, 3,837 debt relief orders (DROs) and 5,586 individual voluntary arrangements (IVAs). 

The 5,586 IVAs registered in April 2025 was 9% higher than in March 2025 and 7% higher than in April 2024. 

There were 3,837 DROs. This is 8% higher than the number registered in March 2025. The number of bankruptcies was 589, which is 6% lower than in March 2025 and 11% lower than in April 2024.

There were 7,273 Breathing Space registrations, which is 5% lower than in April 2024.

Tom Russell, President of R3, the UK’s insolvency and restructuring trade body, and a Licensed Insolvency Practitioner and Director at James Cowper Kreston said “April’s figures were the highest we have seen for this particular month since April 2020 – although the balance between the processes has shifted significantly since then due to changes in the Debt Relief Order (DRO) debt threshold and administration fee and in regulations around how Individual Voluntary Arrangements (IVAs) are marketed. Compared to March 2024, personal insolvencies are up significantly, with more people entering IVAs and DROs in an attempt to help manage their debts.

“When these figures are combined with those applying for Breathing Space, they suggest that the debt problem in England and Wales which has been building over the last couple of months is starting to be reflected in the number of personal insolvencies. This month in particular, IVA and DRO numbers have increased and Breathing Space numbers have fallen, which could be seen as a sign that more people need practical help addressing their debts than last month.

“April also saw increases in a range of household bills, and this may have been the final straw for those who were already struggling to make ends meet after years of rising costs. For those who are not in this position, it will have led to them taking a closer look at their outgoings and making adjustments to help balance their household budgets.

“We have also seen a slowdown in wage growth, and while inflation is falling it remains above the 2% target, and it is very clear that people’s money does not buy what it did six or twelve months ago. The gap between increased costs and wage growth has meant people are increasingly worried about paying their bills and while they are spending, they are spending carefully, with small treats preferred over major purchases.”