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12% annual jump in personal insolvencies across England and Wales in January

A rise in debt relief orders numbers since last year has coincided with the abolition of an admin fee and the expansion of eligibility criteria.



Personal insolvencies in England and Wales rose by 12% in January 2025 compared to January 2024, with 9,706 people entering insolvency. This figure was 3% lower than December 2024. Bankruptcies (592) remained at about half of pre-2020 levels, while debt relief orders (DROs) increased by 82% compared to the 2014-2023 average. Individual voluntary arrangements (IVAs) decreased by 6% compared to the 2024 average. Company insolvencies rose by 6% in January 2025 compared to December 2024 and by 11% compared to January 2024. The Insolvency Service noted that personal insolvency figures highlight ongoing household debt challenges.

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