News
Personal insolvencies jumped by 14% annually in 2024 across England and Wales
Amy Mehers, Director and Head of Personal Insolvency at Leonard Curtis comments on the trends in individual insolvency statistics for 2024.
Amy specialises in assisting individuals to review their options and achieve a solution to their personal financial position in an orderly and protected manner.
The number of personal insolvencies registered in 2024, recorded a 14% increase on the previous year. This is largely driven by an increase in Debt Relief Orders (‘DRO’), with numbers reaching a record high since their introduction in 2009.
DROs are a good option for people with unmanageable debt who have little to no surplus income and who aren’t homeowners and have minimal assets.
The increase in DROs will be due to changes in the qualifying criteria – significantly the qualifying debt level.
Individuals can now qualify for a DRO if their debts are below £50,000 - up on the previous qualifying debt level of £30,000. In addition, the fee to apply for a DRO has now been removed – a good move by The Insolvency Service for those who may have struggled to qualify or pay the fee previously.
In addition, the fee to apply for a DRO has now been removed which is a good move by the Insolvency Service for those who may have struggled to qualify or pay the fee previously.
This has resulted in a reduction in bankruptcies, but it is worth noting that 57% of personal insolvencies registered were Individual Voluntary Arrangements (‘IVAs’).
We use IVAs for individuals with tax liabilities or complex issues such as significant assets or personal guarantees.
Contact Amy Mehers for advice on understanding the options for individuals and how a DRO, IVA or bankruptcy can achieve a solution.
Feedback Form
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Donec ultricies consequat.
News and insights
Get in touch
with Leonard Curtis
Forward
with purpose
Leonard Curtis is a trading style of Reach Commercial Finance Limited, registered at Riverside House, Irwell Street, Manchester, M3 5EN. Company Register number is 09056450. Reach Commercial Finance Limited is authorised and regulated by the Financial Conduct Authority, FRN: 753686. Reach Commercial Finance Limited is an authorised credit broker and not a lender. We work with a an unrestricted number of lenders to find a potentially suitable arrangement for your consideration. ICO registration ZA069234 and you can check via www.ico.org.uk. We will receive commission from lenders. Different lenders pay different amounts depending on different commission models. For transparency we work with the following commission models: fixed fee, fixed rate of commission, percentage of the amount you borrow and rate for risk (this is based on the risk profile of the business). Further details of the commission model, calculation and amount will be disclosed to you throughout your customer journey. Privacy notice.
Leonard Curtis Legal Limited is a limited company, registered in England and Wales with registered number 09820186. Registered office: Riverside House, Irwell Street, Manchester M3 5EN. Leonard Curtis Legal Limited is registered with the Solicitors Regulation Authority with number 626004.