England and Wales personal insolvencies rise as IVAs surge

Personal insolvencies in England and Wales rose significantly in July, driven largely by a surge in individual voluntary arrangements (IVAs). According to figures from the Insolvency Service, 7,442 IVAs were registered in July, representing a 27 per cent increase compared to July of the previous year. This marks the highest monthly total for IVAs since November 2022, excluding a temporary spike in December caused by a backlog clearance.

In total, 11,926 people entered insolvency in July, a 14 per cent increase year-on-year. This total included 3,820 debt relief orders and 664 bankruptcies. IVAs, which allow individuals to reach agreements with creditors to repay debt over time, accounted for 59 per cent of all personal insolvencies in the 12 months leading up to July.

Experts suggest that rising household financial pressures and elevated living costs are driving the shift toward formal debt restructuring. In the corporate sector, registered insolvencies reached 1,931 in July, which was 5 per cent higher than in June but 5 per cent lower than the same month last year.