Number of debt relief orders (DROs) agreed in November nearly double last year

Debt relief orders (DROs) are increasingly being used to help people struggling with problem debt.

The number of debt relief orders administer in November was 45% higher than the same period last year, according to figures out today from the Insolvency Service for England & Wales.

The data shows 3,290 DROs were administered in the penultimate month of the year and levels are now higher than pre-2020 levels. The growth in their usage follows the introduction of new DRO hubs in February 2023.

Money Wellness is one of two commissioned DRO hubs in the country. Find out what a DRO is here and how it could help you if you’re struggling with unmanageable debts.

While DRO figures have increased sharply, the number of individual voluntary arrangements (IVAs) has fallen, down 44% on November 2022 – a 44% decline. This could be due to a combination of record numbers being agreed in 2022 and the FCA’s banning of referral fees for IVA’s in June this year.

Bankruptcies also grew in November with 661 agreed – 18% higher than 2022’s figures, with debtor (17%) and creditor (20%) applications both higher. Bankruptcy numbers so far are higher than in the equivalent months of 2022 but remain lower than pre-2020 levels.

Breathing space registrations were also 10% higher in November, with 7,848 seeking their help. Of the 7,848 registrations, 7,351 were for standard support with a further 133 being used to assist with mental health – 24% higher than last year.

Overall personal insolvency numbers decreased by 21.3% in November with a total of 8,243 compared to last year.  

More for important on the different debt solutions available, visit here:

What’s a debt relief order and how can it help?

What’s and IVA and how can it help?

What’s bankruptcy and is it right for me?

What’s a free debt management plan and how can it help?

What’s debt consolidation and how can it help?