Latest figures from the Insolvency Service have indicated that personal insolvencies increased by 9.2% to 9,954 in September 2021 compared to August’s figure of 9,118, and were 33.2% higher than September 2020’s figure of 7,471.
Bankruptcies
There were 614 bankruptcies were registered, which was 42% lower than September 2020 and 55% lower than September 2019.
Debt Relief Orders
Numbers of Debt Relief Orders (DROs) in September 2021 were at their highest level since the start of the pandemic, with 2,150 DROs registered, following changes to the eligibility criteria on 29th June including an increase in the level of debt at which people can apply for a DRO from £20,000 to £30,000. The number of DROs registered was 41% higher than September 2020 but remained lower than pre-pandemic levels (12% lower than in September 2019).
IVA
There were, on average, 6,853 IVAs registered per month in the three-month period ending September 2021, which is 48% higher than the three-month period ending September 2020 and 9% lower than the three-month period ending September 2019.
Breathing Space
Between the launch of the Breathing Space scheme on 4th May 2021, and 30th September 2021, there were 27,246 registrations, comprised of 26,896 Standard breathing space registrations and 350 Mental Health breathing space registrations.
Commenting on the figures Jenny Mc Greevy, Managing Director of Refresh Debt Advice said “When it comes to personal insolvencies, the increase between August and September was driven by a rise in Individual Voluntary Arrangements and DROs. This suggests that more people in debt are taking steps to resolve the issues they face with their finances. For the majority, it’s likely the catalyst for this increase has been the end of the Furlough Scheme.”
“Three-quarters of people who get debt advice feel more in control of their finances afterwards. The advice from us is simple, anyone struggling with unaffordable debt should seek professional debt advice as soon as possible. We have a team of highly trained professional debt advisers who are ready and eager to help”
