Accredited official statistics

Commentary - Individual Insolvency Statistics February 2025

Published 18 March 2025

Released

18 March 2025

Next release

25 April 2025

Media enquiries

press.office@insolvency.gov.uk

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Statistical enquiries

Gary McElroy (author)

statistics@insolvency.gov.uk

David Webster (responsible statistician)

This publication relates to individual insolvency only. Statistics relating to company insolvency can be found on the company insolvency releases page.

1. Main messages for England and Wales

• After seasonal adjustment, 10,147 individuals entered insolvency in England and Wales in February 2025. This was 4% higher than in January 2025 and 5% lower than in February 2024.

• The individual insolvencies consisted of 600 bankruptcies, 3,865 debt relief orders (DROs) and 5,682 individual voluntary arrangements (IVAs). The number of DROs in February 2025 was similar to January 2025. DRO numbers have been at record-high monthly levels since the abolition of the upfront £90 fee in April 2024. The number of IVAs registered in February 2025 was similar to the average monthly number seen in 2024. Bankruptcy numbers remained at about half of pre-2020 levels and were also 10% lower than in February 2024.

• In the 12 months ending 28 February 2025, one in 417 adults in England and Wales entered insolvency (at a rate of 24.0 per 10,000 adults). This is higher than the rate of 21.9 per 10,000 adults (one in 457) who entered insolvency in the 12 months ending 29 February 2024.

• There were 7,889 Breathing Space registrations in February 2025. This is similar to February 2024.

Figure 1: Individual insolvency numbers were slightly higher in February 2025 than in January 2025.

Monthly individual insolvencies by type, England and Wales, February 2020 to February 2025, seasonally adjusted

Source: Insolvency Service

The long-term series back to January 2000 (where applicable) can be found in the comma-separated values (CSV) file that accompanies this release. Data prior to 2000 can be found in the long-run individual insolvencies CSV file or back to 1960 (where available) on the National Archives website.

1.1 Things you need to know about this release

This statistics release contains the latest data on individual insolvency in the United Kingdom, presenting the numbers of individuals who have entered a formal insolvency procedure after being unable to pay their debts. Informal debt solutions, such as debt management plans, are not included in these statistics. Information is presented separately for England and Wales, Scotland and Northern Ireland.

Underlying data for these monthly statistics for England and Wales were adjusted using an autoregressive integrated moving average (ARIMA) model where there was evidence of seasonality. This removal of systematic calendar-related variation enables comparisons to be made between months and the underlying trend in insolvency numbers to be determined. In accordance with the outcome of the April 2024 Seasonal Adjustment Review, bankruptcies, DROs and IVAs were all seasonally adjusted.

The numbers of breathing space registrations under the Debt Respite Scheme are included in these statistics. Individuals that register for breathing space may or may not end up entering a formal insolvency procedure. Those that do enter a formal insolvency procedure will be counted accordingly in Tables 1 to 5 of the accompanying tables.

Population estimates for people over the age of 18, as published by the Office for National Statistics, were used to calculate individual insolvency rates per 10,000 adults. The 2021-based population projections were used to calculate rates for 2024 and 2025.

All figures presented within this release are provisional and subject to review. Further detail can be found in the accompanying Individual Insolvency Statistics Methodology and Quality document.

1.2 Designation as accredited official statistics

These accredited official statistics were independently reviewed by the Office for Statistics Regulation (OSR) in July 2024. They comply with the standards of trustworthiness, quality and value in the Code of Practice for Statistics and should be labelled ‘accredited official statistics’.

Further details of the OSR’s review of these statistics can be found in their published Compliance Check. You are welcome to contact us directly with any comments about how we meet these standards. Alternatively, you can contact OSR by emailing regulation@statistics.gov.uk or via the OSR website.

2. Individual insolvency in England and Wales

2.1 Number of individual insolvencies

After seasonal adjustment, 10,147 individuals entered insolvency in England and Wales in February 2025. This was 4% higher than in January 2025 and 5% lower than in February 2024. The change of 4% compared to January 2025 is smaller than the average absolute change of 8% between consecutive months over the past three years. The 3,865 DROs registered in February 2025 was 72% higher than the long-term (2015 to 2024) monthly average of 2,252, although below the record high of 4,340 seen in June 2024. The increase in DRO numbers since April 2024 coincided with the abolition of the £90 administration fee to obtain a DRO and the expansion of eligibility criteria in June 2024.

Total individual insolvency numbers peaked in 2009 and 2010 following the 2008-09 recession, then decreased over the next five years as the number of bankruptcies declined. Between 2015 and 2019, a rise in IVA numbers resulted in a corresponding increase in overall insolvency figures. During the COVID-19 pandemic, numbers of bankruptcies and DROs fell, and the increase in IVA numbers slowed. This resulted in lower overall individual insolvency figures between 2020 and 2022 compared to 2019, despite a record high in the annual number of IVAs in 2022.

The number of IVAs declined in 2023, reaching the lowest level since 2017. This drop coincided with a number of changes to the wider regulatory landscape. The Financial Conduct Authority introduced a ban on debt packagers receiving remuneration for referrals to IVA firms. Additionally, Recognised Professional Bodies adopted a new Statement of Insolvency Practice in relation to take-on procedures. In 2024, IVAs increased slightly on 2023 levels but remained below the record annual numbers seen between 2018 and 2022.

In contrast, DRO numbers increased between 2021 and 2023. This rise coincided with the expansion of the eligibility criteria in June 2021 and the introduction of new DRO hubs in February 2023. The number of DROs in 2024 was the highest annual number on record. This followed the removal of the £90 administration fee to obtain a DRO from 6 April 2024 and the expansion of eligibility criteria in June 2024.

Bankruptcy numbers also increased in 2023 from the 40-year low seen in 2022. In 2024, bankruptcy numbers were slightly lower than in 2023 but remained at less than half of pre-2020 levels.

Figure 2: Monthly individual insolvency numbers in 2024 and the first two months of 2025 were higher than in 2023, with DRO numbers being at record highs.

Monthly individual insolvencies by insolvency type, England and Wales, January 2000 to February 2025, seasonally adjusted

Source: Insolvency Service

The long-term series back to January 2000 can be found in the CSV file that accompanies this release. Data prior to 2000 can be found in the long-run individual insolvencies CSV file or back to 1960 (where available) on the National Archives website.

These monthly statistics are seasonally adjusted to account for seasonal variation in insolvencies across the year and allow the underlying trend to be determined. Both adjusted and unadjusted numbers can be found in the accompanying data tables.

In the 12 months to 28 February 2025, 56% of individual insolvencies were IVAs, 38% were DROs, and 6% were bankruptcies. In the previous 12 months (ending February 2024), 61% of individual insolvencies were IVAs, 32% were DROs, and 8% were bankruptcies. The long-term trend shows a decrease in the proportion of individual insolvencies that are bankruptcies. In 2015, for example, 50% of individual insolvencies were IVAs, 30% were DROs and 20% were bankruptcies.

IVAs

The 5,682 IVAs (after seasonal adjustment) registered in February 2025 was 21% lower than in February 2024, but 8% higher than in January 2025. IVA numbers in 2024 and the first two months of 2025 were slightly higher than in 2023 but lower than during 2022, which saw a record high annual number.

Additional information relating to IVA numbers, including numbers by date of approval of creditors and numbers of registered IVAs by the firm managing the case can be found in Tables 1a, 1b, 1c and 7b of the accompanying data tables. Further information on the status of IVAs and the duration of terminated IVAs can be found in the annual IVA outcomes and provider publication.

DROs

In February 2025, there were 3,865 DROs, which is similar to the number registered in January 2025. The number of DROs in February 2025 was 72% higher than the long-term (2015 to 2024) monthly average of 2,252, and monthly numbers between April 2024 and February 2025 were higher than at any other point since their introduction.

Following an announcement on 6 March 2024, the £90 administration fee to obtain a DRO was abolished on 6 April 2024. Furthermore, in June 2024 the criteria for DRO eligibility were expanded. The debt threshold was increased from £30,000 to £50,000 and the allowable value of an exempt motor vehicle was increased from £2,000 to £4,000.

Additional information relating to DRO numbers, including numbers by authorising body, can be found in Tables 1a, 1b and 7a of the accompanying data tables.

Bankruptcies

The number of bankruptcies in February 2025 was 600, which is 1% lower than in January 2025 and 10% lower than in February 2024. Bankruptcy numbers have declined since 2009 and fell further during the COVID-19 pandemic. Numbers remain much lower than the long-term (2015 to 2024) monthly average of 1,023.

Additional information relating to bankruptcy numbers can be found in the sections below and in Tables 1a and 1b of the accompanying data tables. Information relating to Income Payment Agreements and Income Payment Orders in bankruptcy cases can be found in Table 5.

Table 1: The number of individual insolvencies in February 2025 was slightly higher than in January 2025 but slightly lower than in February 2024.

Period	Total individual insolvencies	Bankruptcies	Debt relief orders	Individual voluntary arrangements
Feb 2024	10,684	663	2,854	7,167
Nov 2024	10,056	601	3,687	5,768
Dec 2024	10,097	565	3,518	6,014
Jan 2025	9,752	605	3,863	5,284
Feb 2025	10,147	600	3,865	5,682
Percentage change, latest month compared to:
vs Feb 2024	-5%	-10%	35%	-21%
vs Jan 2025	4%	-1%	0%	8%

Source: Insolvency Service

The long-term series back to January 2000 can be found in the CSV file that accompanies this release. Data prior to 2000 can be found in the long-run individual insolvencies CSV file or back to 1960 (where available) on the National Archives website.

2.2 Breathing Space registrations

There were 7,889 breathing spaces registered under the Debt Respite Scheme in February 2025. This is 2% lower than in February 2024. Of the 7,889 breathing space registrations, 7,775 were Standard breathing space registrations and 114 were Mental Health breathing space registrations. Between the start of the scheme in May 2021 and 28 February 2025, StepChange Debt Charity registered 60% of breathing spaces.

More information on numbers of Breathing Spaces, including by money advisor group, can be found in Tables 6 and 7c of the accompanying data tables.

Figure 3: The number of Breathing Spaces in February 2025 was slightly lower than in February 2024.

Monthly Breathing Space registrations by type, England and Wales, May 2021 to February 2025, not seasonally adjusted

Source: Insolvency Service

Due to an issue with the administrative system from which the data is obtained, breathing space numbers from September 2024 are not yet available. The period from August 2024 to October 2024 is shown with dotted lines to indicate this gap in the time series. Similarly, we are not able to provide an annual 2024 total for breathing space at present.

2.3 Rates of individual insolvency per 10,000 adults

The individual insolvency rate in the 12 months to February 2025 was 24.0 per 10,000 adults in England and Wales (as shown in Table 2 and Figure 4 below). This corresponds to one in 417 adults having entered an insolvency procedure in the past 12 months.

The rate in the 12 months to February 2025 was higher than the rate in the 12 months to February 2024. This was driven by a higher DRO rate, along with a slight increase in the IVA rate, while the bankruptcy rate decreased slightly.

The insolvency rate is calculated as a proportion of the adult population, and is therefore more comparable over longer time periods than absolute numbers. A 12-month rolling rate is presented to reduce the volatility associated with estimates based on single months. The February 2025 rates, for example, were calculated using data covering the period 1 March 2024 to 28 February 2025.

Table 2: The rate of individual insolvency in the 12 months to February 2025 was higher than for February 2024, driven by a rise in DRO rates.

England and Wales, 12 month rolling rate per 10,000 adults, February 2024 to February 2025

Period	Total individual insolvencies	Bankruptcies	Debt relief orders	Individual voluntary arrangements
Feb 2024	21.9	1.6	7.0	13.2
Nov 2024	23.7	1.6	8.7	13.4
Dec 2024	24.1	1.6	8.8	13.7
Jan 2025	24.2	1.5	9.0	13.7
Feb 2025	24.0	1.5	9.1	13.4
Change in rate, latest month compared to:
vs Feb 2024	2.1	-0.1	2.1	0.2

Please note that the total values may not equal the sum of their components due to rounding.

The long-term series back to January 2000 (where applicable) can be found in the CSV file that accompanies this release. Data prior to 2000 can be found in the long-run individual insolvencies CSV file or back to 1960 (where available) on the National Archives website.

In the 12 months to February 2025:

• the IVA rate increased by 0.2 in comparison to the 12 months ending February 2024

• the rate of DROs increased by 2.1

• the rate of bankruptcy decreased by 0.1

Further details can be found in Table 2 of the accompanying data tables.

Figure 4: The individual insolvency rate in the 12 months to February 2025 was higher than in the 12 months to February 2024.

12-month rolling insolvency rate per 10,000 adults, England and Wales, January 2000 to February 2025

Source: Insolvency Service

The long-term series back to January 2000 (where applicable) can be found in the CSV file that accompanies this release. Data prior to 2000 can be found in the long-run individual insolvencies CSV file or back to 1960 (where available) on the National Archives website.

2.4 Bankruptcies by petition type

After seasonal adjustment, there were 600 bankruptcies in February 2025, consisting of:

• 441 resulting from debtors’ applications, which was 4% higher than in January 2025 and 19% lower than in February 2024

• 159 resulting from creditors’ petitions, which was 11% lower than in January 2025 and 31% higher than in February 2024

In February 2025, 74% of bankruptcies resulted from debtors’ applications. This is lower than the 76% average seen in 2024 and much lower than the 85-90% seen during the COVID-19 pandemic, when restrictions applied to creditor petitions.

More detail can be found in Tables 3a and 3b of the accompanying data tables.

Figure 5: Bankruptcies resulting from debtors’ applications were slightly higher in February 2025 than in January 2025, but lower than in February 2024.

Monthly bankruptcies by petition type, England and Wales, February 2020 to February 2025, seasonally adjusted

Source: Insolvency Service

The long-term series can be found in the CSV file that accompanies this release. Data prior to 2000 can be found in the long-run individual insolvencies CSV file or back to 1960 (where available) on the National Archives website.

2.5 Bankruptcies by self-employment status

Bankruptcies by self-employment status are presented with a lag of two months compared to most of the other statistics in this release. This is because it can take several weeks for information relating to trading status to be recorded following the date of the bankruptcy order.

In December 2024, there were 98 bankruptcies (seasonally adjusted) where the individual was self-employed. This is 4% lower than November 2024 and 29% lower than in December 2023. There were 363 bankruptcies among other individuals in December 2024, a decrease of 8% compared with the previous month but 26% lower than in December 2023.

More detail can be found in Tables 4a and 4b of the accompanying data tables. Note that in approximately 14% of bankruptcy cases in the past three years, the employment status is unknown.

Figure 6: The number of self-employed individuals entering bankruptcy in December 2024 was slightly lower than in November 2024.

Monthly bankruptcies by employment status, England and Wales, December 2019 to December 2024, seasonally adjusted

Source: Insolvency Service

The long-term series can be found in the CSV file that accompanies this release. Data prior to 2000 can be found in the long-run individual insolvencies CSV file or back to 1960 (where available) on the National Archives website.

2.6 Self-employed/trader bankruptcies by industry (SIC 2007)

This section breaks down the self-employed bankruptcies (also referred to as ‘trader bankruptcies’) in the previous section by Standard Industrial Classification (SIC 2007) categories. Figures in this section are summed over 12 months to reduce the volatility associated with month-to month changes. As noted in the previous section, data for January 2025 and February 2025 are not yet available.

The industries (in accordance with SIC 2007) that experienced the highest number of trader bankruptcies in 2024 were:

• Other service activities (375, which was 28% of all trader bankruptcies)

• Construction (360, 27% of all trader bankruptcies)

• Accommodation and food service activities (130, 10% of all trader bankruptcies)

• Transportation and storage (115, 9% of all trader bankruptcies)

• Wholesale and retail trade; repair of motor vehicles and motorcycles (101, 8% of all trader bankruptcies)

These five categories made up 81% of trader bankruptcies in 2024. They were also the most common categories in 2023, when they made up 78% of trader bankruptcies. Changes in volumes of trader bankruptcies between 2023 and 2024 in the largest categories ranged from a 31% decrease in Wholesale and retail trade; repair of motor vehicles and motorcycles to a 1% increase in Construction.

Note that the numbers of insolvencies in these categories are likely to be partly driven by the number of self-employed people trading in a given category, and do not reflect the relative likelihood of traders in each industry entering insolvency.

Figure 7: For the larger sectors, changes in the number of self-employed bankruptcies between 2023 and 2024 ranged from a 31% decrease in Wholesale and retail trade to a 1% increase in Construction.

Self-employed bankruptcies by Industry (1-level Standard Industrial Classification) England and Wales, 12-month sum, January 2023 to December 2024

Source: Insolvency Service

Monthly numbers back to 2022 and annual numbers back to 2015 are available in Table 4c of the accompanying data tables.

The quarterly long-term series back to 2013 can be found in the now discontinued quarterly insolvency statistics. Data prior to 2013 can be found on the National Archives website.

3. Individual insolvency in Scotland

Legislation relating to individual insolvency in Scotland is devolved. The Accountant in Bankruptcy (AiB), Scotland’s Insolvency Service, administers individual insolvency in Scotland. The figures below are not seasonally adjusted. The AiB produces individual insolvency statistics on a quarterly basis. Therefore, the numbers in this section are updated once every three months only.

The quarters referred to are calendar year quarters, such that Q4 2024 covers the period 1 October to 31 December 2024. In Q4 2024, there were 1,784 individual insolvencies in Scotland, which was 11% lower than in the same quarter of 2023.

The individual insolvencies were comprised of 1,167 protected trust deeds and 617 bankruptcies (also known as sequestrations), of which 342 went into bankruptcy via the minimal asset process route. The rules regarding bankruptcy differ to those in England and Wales, so numbers of bankruptcies are not directly comparable.

Figure 8: The number of individual insolvencies in Scotland in Q4 2024 was lower than in Q4 2023.

Quarterly individual insolvencies by type. Scotland, Q4 2014 to Q4 2024, not seasonally adjusted

Source: Accountant in Bankruptcy, Scotland

The long-term series can be found in the long-run individual insolvencies CSV file.

More detail can be found in the AiB statistical release.

4. Individual insolvency in Northern Ireland

Individual insolvency in Northern Ireland is governed by separate, but broadly similar, legislation to England and Wales. Therefore, figures are presented separately.

In February 2025, there were 126 individual insolvencies in Northern Ireland. This was 3% higher than in February 2024. There were 83 IVAs, 21 bankruptcies and 22 DROs.

Figure 9: Total individual insolvencies in February 2025 were similar to February 2024.

Monthly individual insolvencies by type, Northern Ireland, February 2020 to February 2025, not seasonally adjusted

Source: Department for the Economy, Northern Ireland

The quarterly long-term series can be found in the long-run individual insolvencies CSV file.

5. Data and Methodology

5.1 Data sources

Individual insolvency data for England and Wales were sourced from the Insolvency Service Case Information System (ISCIS). Individual insolvency data for Northern Ireland were sourced from the Department for the Economy. Numbers for Scotland were sourced from AiB Official Statistics. Breathing space data for England and Wales were sourced from the Breathing Space register.

Population estimates for people over the age of 18, as published by the Office for National Statistics, were used to calculate individual insolvency rates per 10,000 adults. The 2021-based population projections were used to calculate rates for 2024 and 2025.

More information on the administrative systems used to compile insolvency statistics can be found in the accompanying Individual Insolvency Statistics Methodology and Quality document.

5.2 Coverage

This statistical release presents individual insolvency statistics for England and Wales, Scotland and Northern Ireland. More detailed individual insolvency statistics for Scotland can be found on the AiB website. Insolvency statistics for Scotland and Northern Ireland are presented separately to statistics for England and Wales as they are covered by separate legislation and policy responsibility lies with the devolved administrations and may therefore not be directly comparable.

Informal debt solutions, such as debt management plans, are not included in these statistics.

5.3 Methodology and data quality

Detailed methodology and quality information for the monthly insolvency statistical releases can be found in the accompanying Individual Insolvency Statistics Methodology and Quality document.

The main quality and coverage issues to note:

1. This statistical release presents the numbers of IVAs based on their date of registration on Insolvency Service systems. Where there are significant delays in the registration of IVAs, numbers presented here will not reflect the number of IVAs agreed in a given month. Table 1c of the accompanying data tables presents numbers by approval date.

2. Underlying data for these monthly statistics for England and Wales were adjusted using an ARIMA model where there was evidence of seasonality. This removal of systematic calendar-related variation enables comparisons to be made between months and the underlying trend in insolvency numbers to be determined. Data for Scotland and Northern Ireland were not adjusted. The seasonal adjustment models are reviewed on an annual basis. In accordance with the outcome of the April 2024 Seasonal Adjustment Review, bankruptcies, DROs and IVAs were all seasonally adjusted. Seasonal adjustment in this publication typically results in numbers being adjusted by up to 10%. There are a few cases where the adjustment is larger. For example, bankruptcy numbers tend to be 20-30% lower during December than other months. Therefore, the process of seasonal adjustment increases the December bankruptcy numbers by approximately 20-30% to correspond to the underlying trend.

3. Insolvency Service data for the most recent month were extracted approximately five working days after month end and may be revised in the future. In particular, some creditor bankruptcies for the latest month may not yet have been entered onto the administrative system at the time of data extraction.

5.4 Revisions

These statistics are subject to revisions, as set out in the published Revisions Policy. Revisions tend to be made as a result of data being entered onto administrative systems after the cut-off date for data being extracted to produce the statistics. In addition, seasonally adjusted numbers are revised in subsequent publications, as the ARIMA model used is updated with additional data. Any future revisions will be noted in the accompanying data tables.

6. Glossary

6.1 Key terms used within this statistical bulletin

Term	Definition
ARIMA model	Autoregressive integrated moving average, or ARIMA, is a model fitted to time-series data to understand the underlying trend, or to forecast future data points. In this publication, ARIMA models with both non-seasonal and seasonal components are fit to insolvency data. The model removes the seasonal component of the data, including effects resulting from the time of year, as well as the varying number of trading days in different months. This allows month-to-month comparisons to be made.
Bankruptcy	A form of debt relief available for anyone who is unable to pay their debts. Assets owned will vest in a trustee in bankruptcy, who will sell them and distribute the proceeds to creditors. Discharge from debts usually takes place 12 months after the bankruptcy order is granted. Bankruptcies result from either a debtor application, where the individual is unable to pay their debts and applies online to make themselves bankrupt, or a creditor petition, where a creditor owed £5,000 or more can apply to the court to have the individual declared bankrupt. These statistics relate to petitions that resulted in a court order, although not all petitions lead to a bankruptcy order.
Breathing Space	For individuals, the Breathing Space scheme, launched on 4 May 2021, gives people legal protections from their creditors for 60 days, with most interest and penalty charges frozen, and enforcement action halted. Because problem debt can be linked to mental health issues, these protections are also available for people in mental health crisis treatment – for the full duration of their crisis treatment plus another 30 days.
Debt Relief Order (DRO)	A form of debt relief available to those who have a low income, low assets and debt no more than a specified value. There is no distribution to creditors, and discharge from debts takes place 12 months after the DRO is granted. DROs were introduced in April 2009. Following an announcement on 6 March 2024, the £90 administration fee to obtain a DRO was abolished on 6 April 2024. Furthermore, on 28 June 2024, the criteria for DRO eligibility were expanded. The debt threshold was increased from £30,000 to £50,000 and the allowable value of an exempt motor vehicle was increased from £2,000 to £4,000.
Individual Voluntary Arrangement (IVA)	A voluntary means of repaying creditors some or all of what they are owed. Once approved by 75% or more of creditors, the arrangement is binding on all. IVAs are supervised by licensed insolvency practitioners.
Standard Industrial Classification (SIC 2007)	Used in classifying business establishments and other statistical units by the type of economic activity in which they are engaged. Further information can be found on the Office for National Statistics website.