Accredited official statistics

Commentary - Individual Insolvency Statistics December 2025

Published 20 January 2026

Released

20 January 2026

Next release

17 February 2026

Media enquiries

press.office@insolvency.gov.uk

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Statistical enquiries

Edward Tuersley (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.

The Insolvency Service moved to a new case management system on 1 November 2025. There was a controlled introduction of the new system, resulting in a reduction in processing volumes while case management activity recommenced. Accordingly, there was a temporary backlog of IVAs agreed in November 2025 that were registered in December. The number reported for December is therefore higher than if there had not been a backlog and the number for November is lower. Debtor bankruptcy orders were also made in a slower timeframe than usual (although still within statutory requirements). A backlog of cases remained at the end of December 2025, which is likely to result in additional debtor bankruptcies in early 2026.

1. Main messages for England and Wales

1.1 Annual summary for 2025

• The number of individual insolvencies registered in 2025 was 126,240, 7% higher than the 117,958 in 2024 and the highest since 2010. Debt relief orders (DROs) were at the highest annual level since their introduction in 2009.

• The number of individual voluntary arrangements (IVAs) in 2025 was higher than 2024, but remained lower than the record-high annual numbers seen between 2019 and 2022. Bankruptcy numbers were slightly lower than in 2024 and remained less than half of pre-2020 levels.

• In 2025, one in 395 adults in England and Wales entered insolvency (at a rate of 25.3 per 10,000 adults). This is higher than the rate of one in 415 adults (24.1 per 10,000 adults) in 2024.

• In 2025, there were 89,130 breathing spaces registered, a similar level to 2024 and the highest annual total since the start of the scheme in 2021.

Figure 1: Individual insolvency numbers were higher in 2025 than 2024, due to an increase in DRO numbers to a record annual high and an increase in IVA numbers.

Annual individual insolvencies by insolvency type, England and Wales, 2000 to 2025

Source: Insolvency Service

1.2 Monthly summary

• In December 2025, 13,453 individual insolvencies were registered in England and Wales, however this number includes many IVAs that were agreed in November but not registered until December. This is because there was a temporary backlog of IVAs that was processed in December following the Insolvency Service moving to a new case management system. The total number of individual insolvencies for November and December 2025 was 15% higher than the equivalent two months of 2024.

• The individual insolvencies consisted of 601 bankruptcies, 4,150 debt relief orders (DROs) and 8,702 individual voluntary arrangements (IVAs). DRO numbers in December 2025 were slightly lower than the record high seen in August 2025. Numbers of IVAs in November and December were affected by a temporary backlog, meaning that IVAs that would otherwise have been registered in November were instead registered in December. The total number of registered IVAs for November 2025 and December 2025 was 18% higher than the equivalent two months of 2024. Bankruptcy numbers remained at about half of pre-2020 levels but were 4% higher than in December 2024.

• There were 3,884 Breathing Space registrations in December 2025. This is 31% lower than in December 2024.

Figure 2: Individual insolvency numbers in December 2025 were higher than both November 2025 and December 2024. This increase was driven by a higher number of IVAs, as a temporary backlog of IVAs agreed in November 2025 was processed in December.

Monthly individual insolvencies by type, England and Wales, December 2020 to December 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.

1.3 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 2025 Seasonal Adjustment Review, bankruptcies, DROs and IVAs were all seasonally adjusted. Where applicable, seasonally adjusted numbers are used and referred to throughout this commentary. For the series which have been seasonally adjusted, the underlying (non-seasonally adjusted) numbers can be found in Tables 1b, 3b and 4b of the accompanying tables. Breathing space registration figures are not seasonally adjusted as the time series is not yet sufficiently long to support reliable adjustment. Data for Scotland and Northern Ireland are not seasonally adjusted.

The Insolvency Service moved to a new case management system on 1 November 2025. There was a controlled introduction of the new system, resulting in a reduction in processing volumes while case management activity recommenced. Accordingly, there was a temporary backlog of IVAs agreed in November 2025 that were registered in December. The number reported for December is therefore higher than if there had not been a backlog and the number for November is lower. Debtor bankruptcy orders were also made in a slower timeframe than usual (although still within statutory requirements). A backlog of cases remained at the end of December 2025, which is likely to result in additional debtor bankruptcies in early 2026.

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 2022-based population projections were used to calculate rates for 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.

1.4 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: annual summary

The number of individual insolvencies registered in 2025 was 126,240, 7% higher than the 117,958 registered in 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, and in 2025, they increased further, but remained below the record annual numbers seen between 2018 and 2022.

Annual numbers of DROs increased every year from 2021 to 2025. Numbers rose following the expansion of the eligibility criteria in June 2021 and the introduction of new DRO hubs in February 2023. Further larger increases 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. Numbers in 2025 were higher than 2024, making it the year with the highest volume of DROs since their introduction in 2009.

In 2025, bankruptcy numbers were slightly lower than in 2024 and remained at less than half of pre-2020 levels, but were higher than the 40-year low seen in 2022.

In 2025, 57% of individual insolvencies were IVAs, 37% were DROs, and 6% were bankruptcies. These were the same proportions as in 2024. The long-term trend shows a decrease in the proportion of individual insolvencies that are bankruptcies and an increase in the proportion that are DROs. In 2015, 50% of individual insolvencies were IVAs, 30% were DROs and 20% were bankruptcies.

Table 1: The number of individual insolvencies in 2025 was higher than 2024, driven by an increase in DRO numbers to a record annual high and an increase in IVAs

Individual insolvencies, England and Wales, 2021 to 2025

Period	Total individual insolvencies	Bankruptcies	Debt relief orders	Individual voluntary arrangements
2021	110,042	8,722	20,136	81,184
2022	118,752	6,683	24,221	87,848
2023	103,433	7,698	31,717	64,018
2024	117,958	7,622	43,249	67,087
2025	126,240	7,460	46,939	71,841
Percentage change, 2025 compared with:
2024	7%	-2%	9%	7%
2023	22%	-3%	48%	12%

Source: Insolvency Service

2.2 Number of individual insolvencies: monthly summary

In December 2025, 13,453 individuals entered insolvency in England and Wales. This was 42% higher than in November 2025 and 36% higher than in December 2024. These increases were driven by a higher number of IVAs, as a temporary backlog of IVAs agreed in November 2025 was processed in December. The total number of individual insolvencies for November and December 2025 was 15% higher than the equivalent two months of 2024. The 4,150 DROs registered in December 2025 was 84% higher than the long-term (2015 to 2024) monthly average of 2,252, although slightly below the record high of 4,201 seen in August 2025. DRO numbers have been at record-high monthly numbers since the abolition of the upfront £90 fee in April 2024.

Figure 3: Individual insolvency numbers in December 2025 were higher than both November 2025 and December 2024. This increase was driven by a higher number of IVAs, as a temporary backlog of IVAs agreed in November 2025 was processed in December.

Monthly individual insolvencies by insolvency type, England and Wales, January 2000 to December 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.

IVAs

The annual number of IVAs in 2025 was 7% higher than 2024, but remained lower than the record high annual numbers between 2019 and 2022.

The 8,702 IVAs registered in December 2025 was 71% higher than in November 2025 and 47% higher than in December 2024. Numbers of IVAs in November and December were affected by a temporary backlog, meaning that IVAs that would otherwise have been registered in November were instead registered in December. During the period of transition to a new case management system, IVAs by approval date are likely to more accurately reflect the numbers of people entering an IVA in each month than numbers by registration date. The 6,115 IVAs approved in November 2025 was 5% lower than in October 2025 and 9% higher than in November 2024.

Figure 4: In November 2025, the number of approved IVAs was lower than in October 2025.

Monthly approved and registered IVAs, December 2020 to December 2025, seasonally adjusted

Source: Insolvency Service

Additional information relating to IVA numbers, including 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 providers publication.

DROs

The 46,939 DROs in 2025 was a record annual high, 9% higher than 2024, and nearly twice the long-term (2015-2024) annual average of 27,021.

In December 2025, there were 4,150 DROs. This is 8% higher than the number registered in November 2025. The number of DROs in December 2025 was 84% higher than the long-term (2015 to 2024) monthly average of 2,252, but 1% lower than the record high seen in August 2025.

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 2025 was 7,460, slightly lower than the 7,622 in 2024 and less than half of pre-2020 levels. Numbers remain much lower than the long-term (2015 to 2024) annual average of 12,278. Bankruptcy numbers have declined since 2009 and fell further during the COVID-19 pandemic.

The number of bankruptcies in December 2025 was 601, which is 15% higher than in November 2025 and 4% higher than in December 2024. Bankruptcy numbers were lower in November 2025 as debtor bankruptcy orders were made in a slower timeframe than normal due to the change in case management system.

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 2: The number of individual insolvencies in December 2025 was higher than in both November 2025 and December 2024. This increase was driven by a higher number of IVAs, as a temporary backlog of IVAs agreed in November 2025 was processed in December.

Period	Total individual insolvencies	Bankruptcies	Debt relief orders	Individual voluntary arrangements
Dec 2024	9,922	578	3,414	5,930
Sep 2025	11,057	660	3,967	6,430
Oct 2025	10,656	654	3,864	6,138
Nov 2025	9,450	522	3,838	5,090
Dec 2025	13,453	601	4,150	8,702
Percentage change, latest month compared to:
vs Dec 2024	36%	4%	22%	47%
vs Nov 2025	42%	15%	8%	71%

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.

2.3 Breathing Space registrations

In 2025, there were 89,130 breathing spaces registered, a similar level to 2024 and the highest annual total since the start of the scheme in 2021. Of these, 87,813 were Standard breathing space registrations and 1,317 were Mental Health breathing space registrations.

There were 3,884 breathing spaces registered under the Debt Respite Scheme in December 2025. This is 31% lower than in December 2024. Of the 3,884 breathing space registrations, 3,786 were Standard breathing space registrations and 98 were Mental Health breathing space registrations. Between the start of the scheme in May 2021 and 31 December 2025, StepChange Debt Charity registered 59% 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 5: The number of Breathing Spaces in December 2025 was lower than in December 2024.

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

Source: Insolvency Service

2.4 Rates of individual insolvency per 10,000 adults

The individual insolvency rate in 2025 was 25.3 per 10,000 adults in England and Wales (as shown in Table 3 and Figure 6 below). This corresponds to one in 395 adults having entered an insolvency procedure in 2025.

The 2025 rate was higher than the 2024 rate. This was driven by higher DRO and IVA rates, 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 December 2025 rates, for example, were calculated using data covering the period 1 January 2025 to 31 December 2025, and therefore represent the rate of adults entering insolvency in the 2025 calendar year.

Table 3: The rate of individual insolvency in 2025 was higher than for 2024, driven by a rise in both DRO and IVA rates

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

Period	Total individual insolvencies	Bankruptcies	Debt relief orders	Individual voluntary arrangements
Dec 2024	24.1	1.6	8.8	13.7
Sep 2025	24.6	1.5	9.2	13.8
Oct 2025	24.8	1.5	9.3	14.0
Nov 2025	24.6	1.5	9.2	13.9
Dec 2025	25.3	1.5	9.4	14.4
Change in rate, latest month compared to:
vs Dec 2024	1.2	-0.1	0.6	0.7

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 2025:

• the IVA rate increased by 0.7 in comparison to 2024

• the rate of DROs increased by 0.6

• the rate of bankruptcy decreased by 0.1

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

Figure 6: The individual insolvency rate in 2025 was higher than in 2024.

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

2.5 Bankruptcies by petition type

In 2025, there were 7,460 bankruptcies, consisting of:

• 5,532 resulting from debtors’ applications, which was 4% lower than in 2024.

• 1,928 resulting from creditors’ petitions, which was 5% higher than in 2024.

There were 601 bankruptcies in December 2025, consisting of:

• 467 resulting from debtors’ applications, which was 34% higher than in November 2025 and 9% higher than in December 2024. Debtor bankruptcy numbers were lower in November 2025 as they were made in a slower timeframe than normal due to the change in case management system

• 134 resulting from creditors’ petitions, which was 23% lower than in November 2025 and 10% lower than December 2024

In 2025, 74% of bankruptcies resulted from debtors’ applications, slightly lower than the pre-COVID (2015-2019) average of 77%.

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

Figure 7: Bankruptcies resulting from debtors’ applications in December 2025 were higher than in both November 2025 and December 2024.

Monthly bankruptcies by petition type, England and Wales, December 2020 to December 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.

2.6 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 October 2025, there were 86 bankruptcies where the individual was self-employed. This is 21% lower than in September 2025 and 12% lower than in October 2024. There were 384 bankruptcies among other individuals in October 2025, which is 4% lower than in September 2025 and 3% lower than in October 2024. These lower numbers were affected by a higher than usual number of bankruptcies where the employment status has not yet been recorded, as the Insolvency Service transitioned to a new case management system at the end of October 2025.

More detail can be found in Tables 4a and 4b of the accompanying data tables. Note that in approximately 16% of bankruptcy cases in the past three years, the employment status is unknown.

Figure 8: The number of self-employed individuals entering bankruptcy in October 2025 was lower than in September 2025, however this was affected by a higher than usual number of bankruptcies where the employment status was not yet recorded.

Monthly bankruptcies by employment status, England and Wales, October 2020 to October 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.

2.7 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 November 2025 and December 2025 are not yet available.

The industries (in accordance with SIC 2007) that experienced the highest number of trader bankruptcies in the 12 months to October 2025 were:

• Other service activities (352, which was 30% of all trader bankruptcies)

• Construction (267, 23% of all trader bankruptcies)

• Accommodation and food service activities (112, 10% of all trader bankruptcies)

• Transportation and storage (103, 9% of all trader bankruptcies)

• Wholesale and retail trade; repair of motor vehicles and motorcycles (81, 7% of all trader bankruptcies)

These five categories made up 79% of trader bankruptcies in the 12 months to 31 October 2025. They were also the most common categories in the 12 months to 31 October 2024, when they made up 81% of trader bankruptcies. Changes in volumes of trader bankruptcies between the 12 months to 31 October 2024 and the 12 months to 31 October 2025 in the largest categories ranged from a 28% decrease in Construction to a 12% decrease in Transportation and storage.

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 9: For the larger sectors, changes in the number of self-employed bankruptcies in the 12 months to 31 October 2025 compared to the previous 12 months ranged from a 28% decrease in Construction to a 12% decrease in Transportation and storage.

Self-employed bankruptcies by Industry (1-level Standard Industrial Classification) England and Wales, 12-month sum, November 2023 to October 2025

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 Q1 2025 covers the period 1 January to 31 March 2025. In Q3 2025, there were 1,780 individual insolvencies in Scotland, which was 6% lower than in the same quarter of 2024.

The individual insolvencies were comprised of 1,056 protected trust deeds and 724 bankruptcies (also known as sequestrations), of which 401 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 10: The number of individual insolvencies in Scotland in Q3 2025 was lower than in Q3 2024.

Quarterly individual insolvencies by type. Scotland, Q1 2015 to Q3 2025, 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.

The annual number of insolvencies in Northern Ireland in 2025 was 1,599, 4% higher than 2024.

In December 2025, there were 149 individual insolvencies in Northern Ireland. This was 48% higher than in December 2024. There were 112 IVAs, 21 DROs and 16 bankruptcies.

Figure 11: Total individual insolvencies in Northern Ireland in December 2025 were higher than in December 2024.

Monthly individual insolvencies by type, Northern Ireland, December 2020 to December 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 Insolvency Service administrative systems. 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.

The Insolvency Service moved to a new case management system on 1 November 2025. There was a controlled introduction of the new system, resulting in a reduction in processing volumes while case management activity recommenced. Accordingly, there was a temporary backlog of IVAs agreed in November 2025 that were registered in December. The number reported for December is therefore higher than if there had not been a backlog and the number for November is lower. Debtor bankruptcy orders were also made in a slower timeframe than usual (although still within statutory requirements). A backlog of cases remained at the end of December 2025, which is likely to result in additional debtor bankruptcies in early 2026.

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 2022-based population projections were used to calculate rates for 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 2025 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.