Debt relief hits all-time high

THE NUMBER of people who took out debt relief orders (DROs) to ease their financial struggles hit a record high in August, Insolvency Service figures reveal.

- By Henry Pritchard

Nearly 12,000 people entered insolvency, made up of DROs, bankruptcies and individual voluntary arrangements (IVAs).

The number of DROs exceeded a previous high in June 2024, since they were introduced in 2009.

In total, the number of people going financially insolvent across England and Wales jumped by 16% last month compared with the same month a year ago.

Some 11,348 people entered insolvency, which was also 7% higher than the total in July this year. The insolvency total was made up of 4,239 DROs, 622 bankruptcies and 6,487 IVAs.