The number of people seeking “breathing space” from their debts in England and Wales has seen a significant increase of 26% in the second quarter of 2023 compared to the same period in 2022, according to data from the Insolvency Service.
The total number of breathing space registrations during this period was 21,232, with 20,919 standard registrations and 313 mental health breathing space registrations.
A total of 26,390 personal insolvencies were recorded during this period, which was also 8% lower than in the first quarter of the year.
Between April 1 and June 30, 2023, a total of 6,342 company insolvencies were registered across England and Wales.
The decline in personal insolvencies, particularly in the number of IVAs, suggests that the trend of higher-than-normal IVA registrations during the pandemic may be slowing down.
The rising number of breathing space registrations and company insolvencies highlights the need for financial support and advice for those facing economic hardships.