91探花

The personal insolvency statistics for Q3 2024 show a continuing quarter on quarter rise in the number of individuals entering a personal insolvency procedure, albeit the rate of increase is slowing. Individual voluntary arrangement (IVA) numbers increased by 7% and debt relief orders (DROs) rose by 5% compared to the previous quarter. But bankruptcy numbers continued the downward trend, falling 7% in the period.

The seasonally adjusted figures, released today by the , reveal that there were 31,276 individuals entering either bankruptcy (1,815), DRO (12,311) or IVA (17,150) in Q3 2024.

DRO numbers remain high having continually increased since Q1 2021. The abolition of the £90 administration fee in April 2024 saw a dramatic 28% rise in applications in Q2 2024; however, Q3 2024 has seen those registrations slow with a modest 5% rise compared to the last quarter.

Bankruptcy numbers continue to fall with a 7% decrease on the previous quarter and a 10% decrease compared to Q3 2023. Debtors’ applications account for 76% of bankruptcies in Q3 2024.

Duncan Lyle, personal insolvency director at 91探花 said: “As expected, Q3 has continued to see a rise in DROs following the abolition of the application fee in April 2024, and the subsequent increase in the asset and debt level thresholds. However, Q3 has seen this trend slow with an average 3% month on month decline throughout the quarter, resulting in 5% quarter on quarter growth.

“Debtors’ bankruptcy applications continue to decline, with a 10% reduction on the prior quarter; it may be that increasing numbers of individuals feel confident that they can commit to a structured formal repayment process. Furthermore, with Breathing Space registrations steadily increasing, this could also have affected the number of bankruptcies.

“Whilst there has been a reduction in the number of debtors’ applications, (from 1,515 to 1,365 quarter on quarter) the number of creditor led bankruptcies has risen 11% compared to Q2 2024 In absolute terms, this 11% increase has seen creditor led bankruptcies in the quarter of 430, up from 388 in the previous quarter. Greater pressure on individuals to meet their obligations under personal guarantees has likely contributed to this increase.”

He added: “The number of IVAs recorded in Q1 and Q2 2024, 17,698 and 16,072 respectively, has remained largely unchanged with a total of 17,150 registered in Q3; however, to put into context, whilst Q3 2024 saw an increase of 25% compared to Q3 2023, the number of registrations is still 20% lower than those seen in Q3 2022.”