UK personal insolvency statistics February 2026: DROs hit record high as total insolvencies surge 18%

The latest insolvency statistics from the Insolvency Service show personal insolvencies in England and Wales rising sharply in February 2026, with 11,609 individuals entering a formal debt solution — 18% more than in February 2025 and 6% higher than January 2026.

A record number of Debt Relief Orders signals continued financial strain on lower-income households, while IVAs also posted strong growth.

Headline statistics – February 2026

• 11,609 individual insolvencies registered in England and Wales — up 18% on February 2025 and 6% on January 2026
• Breakdown by type:
  • 6,631 IVAs — up 20% year-on-year and 6% month-on-month
  • 4,210 DROs — a record high since their introduction in 2009
  • 768 bankruptcies — up 25% year-on-year, though figures were affected by a system backlog (see below)
• In the 12 months to February 2026, one in 388 adults entered insolvency (25.8 per 10,000 adults), up from one in 417 (24.0 per 10,000) in the 12 months to February 2025

What’s driving the numbers?

DROs: A record-breaking month

February 2026 saw 4,210 DROs registered — the highest monthly figure since DROs were introduced in 2009, surpassing the previous record of 4,185 set in August 2025. This continued strength reflects two significant policy changes: the removal of the £90 application fee in April 2024 and the expansion of eligibility criteria in June 2024.

Both changes lowered the barrier to access for individuals with limited assets and no realistic prospect of repaying their debts. Monthly DRO volumes over the past two years have been higher than at any other point in the history of the scheme.

IVAs: Continued recovery

At 6,631, IVAs in February 2026 were 20% higher than February 2025 and 11% above the 2025 monthly average. The gradual recovery from the 2023 dip — which followed FCA restrictions on debt packager referral fees and tighter take-on rules — continues, though volumes remain below the record levels seen between 2018 and 2022.

Bankruptcies: Figures distorted by system backlog

The 768 bankruptcies recorded in February 2026 should be treated with some caution. The Insolvency Service’s move to a new case management system in November 2025 created a backlog of debtor bankruptcy orders, which were cleared across January and February 2026.

The Insolvency Service notes that the average monthly bankruptcy figure across November 2025 to February 2026 was 8% higher than the first ten months of 2025, giving a better indication of the underlying trend than any single month’s figure.

Insolvency type breakdown — 12 months to February 2026

The distribution of insolvency types over the past 12 months was:

• 57% IVAs
• 37% DROs
• 6% bankruptcies

This is broadly consistent with the previous year (56% IVAs, 38% DROs, 6% bankruptcies) but represents a dramatic long-term shift. In 2016, bankruptcies accounted for 17% of all insolvencies.

Breathing Space registrations: Sharp fall

There were 5,102 Breathing Space registrations in February 2026, a 35% drop compared to February 2025. Of these, 4,997 were standard Breathing Spaces and 105 were Mental Health Breathing Spaces. The significant fall is largely attributable to StepChange Debt Charity — which has historically accounted for the majority of registrations — updating its suitability criteria in November 2025, resulting in fewer clients being referred to the scheme.

Regional picture

In Scotland, there were 1,896 individual insolvencies in Q4 2025, up 6% on the same quarter in 2024, comprising 1,122 protected trust deeds and 774 bankruptcies. In Northern Ireland, February 2026 saw 138 individual insolvencies — 10% higher than February 2025 — made up of 109 IVAs, 20 DROs and 9 bankruptcies.

Conclusion

February 2026’s figures paint a clear picture: personal insolvencies are rising, driven by record DRO volumes and a steady increase in IVAs. The growing rate of insolvency — now one in 388 adults over the past 12 months — reflects the sustained financial pressure many households continue to face. With DRO eligibility now broader and more accessible than ever, demand for lower-income debt solutions in particular shows no sign of abating.

For anyone struggling with unmanageable debt, regulated solutions are available. Contact our expert team today.

For the full statistical release, visit the Insolvency Service website.