This data, which covers the number of individual insolvencies in December 2024 and draws annual and monthly comparisons, offers a huge level of insight for both those facing insolvencies and insolvency practitioners primed to assist them. Our team of expert insolvency lawyers has pulled together these key insights in this article.

Key Highlights From The Latest Individual Insolvency Statistics

• After seasonable adjustment, 10,050 individuals entered insolvency in December 2024. This was similar to November 2024 and 23% higher than December 2023.  
• 549 bankruptcies were recorded in December 2024. Bankruptcy numbers remained at half of the pre-covid pandemic levels.
• As an alternative to bankruptcy proceedings, there were 3,473 debt relief orders (“DROs”) and 6,028 individual voluntary arrangements (“IVAs”) 
• The number of DROs in 2024 reached a record high for any year. The increase was due to the removal of the £90 administration fee on 6 April 2024 and the expansion of eligibility criteria in June 2024.
• 5,650 Breathing space registrations were entered into under the Debt Respite Scheme. This is 2% lower than the previous year December 2023.
• In the period ending  October 2024, the rate of adults entering insolvency in England and Wales was 1 in 415. This marks an increase from the previous year’s individual insolvency rate.

Number of Individual Insolvencies

In examining the statistical figures of individuals entering into insolvency, the number of individuals entering into insolvency in October 2024 was higher than the previous years due to the higher rates of DROs.  

Alternatives To Insolvency Proceedings

If you are facing financial difficulties, there are a few solutions in England and Wales that you may consider. The right response to individual insolvency will depend on our individual circumstances. 

The most common solutions include:-

• Individual Voluntary Arrangement (IVA): This is a formal agreement between you and your creditors to pay back all or part of your debts over a set period, usually between five or six years. It allows you to avoid bankruptcy while making affordable payments to your creditors based on what you can afford.
• Debt Management Plan (DMP): This is an informal agreement between you and your creditors to repay your debts at a reduced rate over a longer period. It does not involve the courts and allows for more flexibility in repayment terms.
• Debt Relief Order (DRO): A DRO is a form of bankruptcy for people with low income, few assets, and relatively low debt. It freezes your debts for 12 months and if your situation hasn’t changed after that, your debts are usually written off.
• Informal Negotiations with Creditors: This involves reaching out to your creditors to see if they are open to an agreement and often involves negotiating a settlement. 
• The Debt Respite Scheme (Breathing Space): This provides legal protection from creditors for a short period of time. There are 2 types of breathing space:

1. 1. Standard breathing space: This solution is available to anyone experiencing issues with debt and provides up to 60 days of legal protection from creditors
   2. Mental Health Crisis breathing space: This solution is only available to someone who is receiving mental health crisis treatment and lasts for the duration of the person’s mental health treatment plus an additional 30 days.

Some of the benefits associated with the solutions as an alternative to bankruptcy include providing relief, being able to take control of debt and the opportunity to regain control of finances. 

Each solution is dependent on your personal circumstances, the type of financial arrangement and the amount of debt owed. With this in mind, it is best to consult a specialist insolvency lawyer to discuss your options with clarity.

At Kitson Boyce, our team of insolvency solicitors are best placed to help you with all of the issues you may face. Whether the latest individual insolvency statistics have raised concerns or you are facing creditor pressure, there are suitable ways forward. Our qualified team can provide you with tailored individual insolvency advice and put you in contact with our wide network of insolvency practitioners who can assist you through the next steps.

By seeking prompt legal advice, there will be more options available to you. Don’t hesitate to get in touch with us directly today by entering your contact details in the form below or reaching out to Andrew Pay, Partner and Head of our Dispute Resolution and Insolvency team. Alternatively, you can call us directly on 01803 202020.