Individual Voluntary Arrangements hit highest level since November 2022
By Liam Buckler ·
The number of people entering Individual Voluntary Arrangements (IVAs) in England and Wales reached 7,385 in September, the highest level since November 2022, with experts telling Newspage the figures highlight pressure on household finances.
According to the latest Insolvency Service figures, 11,894 individuals entered insolvency in England and Wales, 9% higher than in September 2025. These comprised 7,385 IVAs, 3,838 Debt Relief Orders (DROs) and 671 bankruptcies.
Stephen Perkins, Mortgage Broker and Managing Director at Norwich-based Yellow Brick Mortgages, said the rise in IVAs shows the financial pressures facing households.
He commented: "More people entering IVAs is another sign of how little financial breathing room some households have left. Higher housing costs, food, energy and borrowing costs have all been competing for the same income, and eventually something has to give.
“An IVA can be appropriate in some circumstances, but it is a major financial step with long-term consequences. Anyone struggling should seek proper debt advice early, before missed payments and short-term borrowing turn a difficult situation into a much harder one."
Tony Redondo, Founder at Newquay-based Cosmos Currency Exchange, said years of high living costs and increased borrowing costs had left households struggling to manage their finances.
He commented: "Anaemic growth, the highest tax burden since 1948, costly energy and interest rates up from 0.1% in late 2021 to 3.75% today and households are feeling the squeeze. Headline inflation has cooled, but food, energy and housing costs remain stubbornly high. Years of dear money have inflated debt servicing on mortgages, cards and loans, and families who leaned on credit for essentials have seen savings drained. Insolvency is a lagging indicator.
“Today’s figures reflect years of compounding strain, not a sudden shock. The main driver is Individual Voluntary Arrangements (IVAs), now the majority of cases as providers adjust to regulatory change, alongside easier access to Debt Relief Orders. Reversing this needs sustained real wage growth, affordable housing and energy, tighter rules on high-cost borrowing and early, free debt advice. None of that is likely."
Households are having to rely on credit to help pay their bills, according to one expert.
Nouran Moustafa, Practice Principal & IFA at Roxton Wealth, said: "People do not suddenly become insolvent. Usually they have been financially drowning for months before the paperwork catches up. Housing, food, energy and borrowing costs have all become harder to absorb, so people cut spending, then use credit, then use more credit to repay the first credit. Eventually there is nowhere left to move the problem.
“What worries me most is the rise in IVAs. Debt solutions can be appropriate, but people need proper independent debt advice before committing to something that can affect them for years. The answer is not simply ‘budget better’. If essential bills already exceed income, there is no clever spreadsheet that fixes that. People need help earlier, before debt becomes a crisis rather than after."
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