Debt Relief Orders remain at record levels as charity urges people to seek advice
National Debtline responds to latest insolvency figures.
Posted October 18, 2024
The number of people entering Debt Relief Orders has remained at record levels, according to the latest Insolvency Service figures, showing personal insolvencies in September were 44 percent higher than in September 2023 at 10,651.
Debt Relief Orders provide debt write-off for people on low incomes, with minimal or no assets. Earlier this year eligibility for Debt Relief Orders was extended, and the £90 fee was removed.
This has led to record levels of people entering Debt Relief Orders – with numbers in September 2024 up 91% on the long-term monthly average.
IVA registrations in September 2024 stood at 6,052 – 14% higher than in August. The figures come a day after the Insolvency Service released research highlighting concerns of poor practice in the IVA market.
Leading debt advice charity, National Debtline, is urging anyone struggling with their debts to contact National Debtline for free, independent advice.
Matt Hartley, Director of Engagement at the Money Advice Trust, the charity that runs National Debtline, said:
“We’re continuing to see record levels of people getting Debt Relief Orders, and with personal insolvencies up more widely, it shows the ongoing impact high costs have had on people’s finances.
“It’s vital people with unaffordable debts are able to access the right debt option for them. However, findings from the Insolvency Service show this sadly isn’t always the case, with some people being pushed towards IVAs that weren’t right for them.
“This risks pushing people further into financial difficulty, so our message to anyone who is struggling is to always seek free, independent advice from a service like National Debtline. Our advisers can help find the right next steps, whatever the circumstances.”
National Debtline provides free, independent, expert advice. Contact National Debtline for free on 0808 808 4000 or via www.nationaldebtline.org.
