The 2019 individual insolvency stats for England and Wales have been published by The Insolvency Service, alongside UK insolvency statistics for October to December 2019 (Q4).

Individual insolvency statistics for England and Wales 2019

• In 2019, total individual insolvencies increased to their highest annual level since 2010.
• This was largely driven by an increase in individual voluntary agreements which reached their highest level since they were introduced.
• Bankruptcies increased slightly compared to 2018, while debt relief orders decreased slightly.

Total individual insolvencies increased for the fourth consecutive year to 122,181, a rise of 6.0 per cent compared to 2018.

This was largely driven by a 9.8 per cent increase in individual voluntary agreements (IVAs) to 77,982. This is the highest annual level of IVAs recorded since their introduction in 1987. IVAs accounted for 63.8 per cent of all individual insolvencies in 2019 in contrast to 2010 when only 37.5 per cent of all insolvencies were IVAs.

There was a 0.6 per cent increase in bankruptcies between 2018 and 2019, to 16,702, while debt relief orders (DROs) fell 0.7 per cent to 27,497.

Insolvency rate statistics for England and Wales 2019

• In the 12 months ending Q4 2019, for every 10,000 adults in England and Wales, 26.2 entered insolvency.
• This was down from 27.4 per 10,000 in the 12 months ending Q3 2019.

Unlike an absolute number of insolvencies over a period, the insolvency rate gives an indication of the probability of an individual becoming insolvent in the previous 4 quarters.

Individual insolvency statistics for England and Wales – Q4 2019

• Total individual insolvencies decreased in Q4 2019 compared with Q3 2019.
• This was mainly driven by a decrease in IVAs, though levels remain elevated.
• DROs increased in Q4 2019 in comparison to the previous quarter, while bankruptcies decreased slightly.

In Q4 2019 there were a total of 29,261 individual insolvencies, a 4.3 per cent decrease from Q3 2019 and a 15.6 per cent decrease when compared to Q4 2018. The fall in individual insolvencies in Q4 2019 was mainly driven by a decrease in IVAs, which decreased by 7.2 per cent to 18,197 compared with Q3 2019.

Bankruptcies also fell, decreasing by 0.7 per cent to 4,118. The fall in overall individual insolvencies was slightly offset by DROs which increased by 2.0 per cent compared to Q3 2019.

Individual insolvency statistics for Scotland – Q4 2019

• There were 3,312 individual insolvencies in Scotland in Q4 2019.
• This was an increase of 3.1% compared to Q4 2018.
• This comprised of 1,214 sequestrations (of which 529 went into sequestration via the minimal asset process route) and 2,098 protected trust deeds.

Please note, legislation relating to individual insolvency in Scotland is devolved. The Accountant in Bankruptcy, Scotland?s Insolvency Service, administers individual insolvency in Scotland.

Individual insolvency statistics for Northern Ireland – Q4 2019

• There were 656 individual insolvencies in Northern Ireland in Q4 2019.
• This was an increase of 6.7% compared to Q4 2018.
• This comprised 372 IVAs, 164 bankruptcies and 120 DROs.

Please note, individual insolvency in Northern Ireland is governed by separate, but broadly similar, legislation to England and Wales, and so figures are presented separately.

Next release

Individual insolvency figures for Q1 2020 will be released on 30 April 2020 at 9.30am.

See also

UK company insolvency statistics for 2019

How can personal insolvency be legally satisfied?

Place an insolvency notice

Personal insolvencies in the UK rise to an eight-year high

Find out more

Individual Insolvency Statistics, Q4 October to December 2019 (The Insolvency Service)

Company insolvency statistics, Q4 October to December 2019 (The Insolvency Service)

Image: Getty Images

Publication date: 31 January 2020