Individual Insolvency Statistics July to September 2023
The individual insolvency statistics for July to September 2023 have recently been released and reveal a slight decrease in the number of individuals becoming insolvent and an increase in individuals entering other arrangements to deal with management of their debts.
The Headlines
- The number of Debt Relief Orders (DROs) was the highest quarterly number since their introduction in 2009.
- There were 24,418 individual insolvencies registered in Q3 of 2023. This figure is 15% lower than in Q3 of 2022.
- 1 in 441 adults entered insolvency between 1 October 2022 and 30 September 2023. This is a decrease from the adults who entered insolvency in the 12 months ending 30 September 2022.
- There were 23,089 Breathing Space Registrations in Q3 of 2023. This is 26% higher than Q3 of 2022.
- While there has been a long-term decline in bankruptcy numbers, the first three quarters of 2023 saw a slight increase from the 40-year low annual number in 2022.
Behind the Headlines
Individual finances remain a major concern for many people. The health of the economy, job security and the general cost of living are key areas of concern for people and as such every penny is being scrutinised.
The number of individuals entering personal insolvency in Q3 of 2023 has dropped for the fourth consecutive quarter and is at the lowest level since Q3 of 2020. This fall is heavily fuelled by a significant reduction in individual voluntary arrangement (IVA) registrations for the second successive quarter. The overall trend is that IVA numbers in 2023 to date have been lower than the record-high numbers in 2022.
Bankruptcy numbers rose for the third successive quarter, this time by 8% on the previous quarter, and recorded the highest number since Q2 of 2021.
Bankruptcy numbers are higher than this time last year, but well below pre-pandemic levels, while DRO numbers are at their highest for more than a decade. It’s likely that this is because of the increase in the DRO threshold and suggests that the cost-of-living crisis is resulting in more people turning to these processes for help managing their debts.
What to Do
Kitson Boyce LLP is well placed to help you on all issues you face. If you are facing creditor pressure, there are options. We would be happy to provide initial advice and, if required, put you in direct contact with our wide network of insolvency practitioners who are qualified and experienced to give you the attention you need and advise on the available options and recommendations.
The sooner you seek that advice, the more options you may have. In the first instance, please contact Andrew Pay, Partner and Head of our Dispute Resolution and Insolvency team.
