Personal insolvencies increased in February

Latest monthly figures from the Insolvency Service for England & Wales have indicated that personal insolvencies increased by 18% when comparedby February 2025 and 6% higher than in January 2026, totalling 11,609 insolvencies.

The personal insolvency data consisted of 768 bankruptcies, 4,210 debt relief orders (DROs) and 6,631 individual voluntary arrangements (IVAs).

The 6,631 IVAs registered in February 2026 was 6% higher than in January 2026, 20% higher than in February 2025 and 11% higher than the 2025 monthly average.

The 4,210 DROs were made, the highest number on record in the monthly time series going back to their introduction in 2009. This was 9% higher than in January 2026. 

The number of bankruptcies in February 2026 was 768, which was 5% lower than in January 2026 but 25% higher than in February 2025.

There were 5,102 breathing spaces registered under the Debt Respite Scheme. This was 35% lower than in February 2025. Of the 5,102 breathing space registrations, 4,997 were Standard breathing space registrations and 105 were Mental Health breathing space registrations.

Commenting on the data, Tom Russell, Insolvency Practitioner and Director at James Cowper Kreston, said “We are seeing a sustained rise in personal insolvencies which were 18% higher in February than the same month last year as cost of living pressures continue to bite. The number of debt relief orders (DROs) in February 2026 reached 4,210 – their highest rate since they were introduced in 2009, exceeding the previous high of 4,185 in August 2025. There were also 768 bankruptcies and 6,631 individual voluntary arrangements (IVAs).

“The increase in the number of debt relief orders (DROs) shows that many households are really struggling to make ends meet.  The prospect of inflation increasing at a faster rate than expected because of the Middle East conflict comes on top the already high cost of everyday living.  Any sustained rise in inflation will make it harder for people to balance their finances, especially those with little financial resilience.

“Many households will be hoping that this is a short‑lived spike in prices, but if higher costs persist, we could see growing numbers of people seeking debt advice and support.”