Personal insolvencies jump as debt relief order registrations reach record high

The number of people going financially insolvent in March in England and Wales jumped by 30% annually, as registrations for debt relief orders reached a new record high, according to Insolvency Service figures.

In March, 12,252 personal insolvencies were registered across England and Wales.

This was 30% higher than in March 2025 and 3% higher than in February 2026.

Personal insolvencies are made up of bankruptcies and individual voluntary arrangements (IVAs) as well as debt relief orders (DROs).

At 4,523, the number of DROs in March was a record high going back to their introduction in 2009. March’s figure leapfrogged a previous high of 4,301, recorded in February 2026.

Numbers of DROs increased following the expansion of eligibility criteria in June 2021 and the introduction of new DRO hubs in February 2023.

Further increases followed the removal of a £90 admin fee to obtain a DRO in April 2024 and further expansion of eligibility criteria in June 2024, the Insolvency Service said.

The remaining personal insolvency total was made up of 654 bankruptcies and 7,075 IVAs.

There were also 5,175 Breathing Space registrations in March, which was 36% lower than in March 2025. Breathing Space schemes help to give people time to get on top of their debts.

The Insolvency Service also said 2,022 company insolvencies were registered in England and Wales in March, which was 7% higher than in February and at similar levels to March 2025.

The increase in March followed four months of numbers that were lower than those typically seen between 2022 and 2025 and was mostly driven by more than 100 connected companies in the real estate sector entering administration, the report said.

Giuseppe Parla, restructuring and insolvency director at Menzies LLP, said: “Ongoing tensions in the Middle East are driving up energy and fuel costs, disrupting supply chains, and keeping inflation stubbornly above the Bank of England’s 2% target.”

Matthew Richards, joint head of restructuring and insolvency at accountancy and business advisory group Azets, said: “The conflict in Iran is already taking a toll on businesses and balance sheets across the UK.

“Directors who were previously surviving have been concerned about the impact the war will have on their finances, and the increase in costs it caused has been the tipping point for many firms.”