The number of people going financially insolvent in England and Wales jumped by 4% month-on-month in February.
Some 10,147 people entered insolvency in February, which was 4% higher than in January and 5% lower than in February 2024, the Insolvency Service said.
The insolvencies were made up of 600 bankruptcies, 3,865 debt relief orders (DROs) and 5,682 individual voluntary arrangements (IVAs).
- Bankruptcies, 600
- Debt relief orders, 3,865
- Individual voluntary arrangements, 5,682
The number of DROs in February was similar to January levels, the Insolvency Service said.
Its report said: “DRO numbers have been at record-high monthly levels since the abolition of the upfront £90 fee in April 2024.”
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, the report said.
The number of IVAs in February was similar to the average monthly number seen last year.
Bankruptcy numbers remained at about half of pre-2020 levels and were also 10% lower than in February last year.
There were 7,889 breathing space registrations under the Debt Respite Scheme in February 2025, which was 2% lower than in February 2024.
People can register for breathing space to give themselves a time period to get on top of their debts without being chased by creditors.
A standard breathing space gives people with problem debt legal protections from creditor action for up to 60 days.
Get a free fractional share worth up to £100.
Capital at risk.
Terms and conditions apply.
Get a free fractional share worth up to £100.
Capital at risk.
Terms and conditions apply.
Of the 7,889 breathing space registrations in February, 7,775 were standard and 114 were mental health breathing space registrations.
A mental health crisis breathing space is available to those receiving mental health crisis treatment. It lasts as long as the person’s mental health crisis treatment, plus 30 days.
There were also 2,035 company insolvencies registered in England and Wales in February, which was 3% higher than in January and 7% lower than the same month in the previous year.
Company insolvencies over the past year have been slightly lower than in 2023, which marked a 30-year annual high, but have remained high compared with historical levels, the Insolvency Service said.
