April and May 2025 painted a blunt picture: more than 10,000 people in England and Wales entered insolvency last month. That\’s a 5% rise from the same time last year. That includes 648 bankruptcies, 3,783 Debt Relief Orders (DROs), and 5,583 Individual Voluntary Arrangements (IVAs).
It’s not just households. In May, 2,252 companies in England and Wales registered as insolvent. That\’s a mix of compulsory liquidations, creditors\’ voluntary liquidations, and administration. The trend is steady, and it’s not going away any time soon.
Why? Well, you’ve got a brutal combination: high interest rates, rising prices, and wages that haven’t kept up. The cost-of-living crisis didn’t just hit people’s wallets – it hit their confidence and security. For many, it’s no longer about budgeting or belt-tightening. It’s about survival.
For individuals, the rise in DROs, up 26% year-on-year, is telling. More people are realising they can\’t keep juggling debt. They’re making hard decisions. DROs can feel like admitting defeat, but often, they’re the start of getting life back in order.
Then there’s the business side. Small firms are getting squeezed. Late payments, higher running costs, fewer customers spending – eventually, something gives. Many of the companies going into liquidation are doing so not because they were reckless, but because they just ran out of room to manoeuvre.
We’re seeing the real human cost of these numbers. People who’ve worked hard their whole lives now facing court letters. Small business owners who poured everything into their venture, left with nothing but creditors chasing them. It’s heart-breaking, but it’s also why we do what we do.
Helping someone find their way around these systems isn’t about ticking boxes or quoting legal terms. It’s about listening. Understanding. Taking the pressure off. And offering a plan that gives them a bit of hope – and a way forward.
We\’re not here to judge. We’re here because everyone deserves to breathe again and to stop dreading the post.
2025 hasn’t been kind to many. But there are still options. And there’s still time to take back some control.
If you need help, please get in touch.
