Personal Insolvencies 14 Percent Higher Than Last Year

Personal Insolvencies 14 Percent Higher Than Last Year

More individuals are entering formal insolvency, and for creditors that raises a practical question that debtor tracing answers before any enforcement step is taken. Official statistics published on 18 August 2026 show that 11,926 individuals entered insolvency in England and Wales in July 2026, similar to June but 14 percent higher than in July 2025.

What the July 2026 Figures Show

The monthly total was made up of 664 bankruptcies, 3,820 debt relief orders and 7,442 individual voluntary arrangements. IVAs did most of the lifting: leaving aside a December 2025 backlog, this was the highest monthly IVA figure since November 2022. Bankruptcies were lower than in June but higher than a year earlier, while debt relief orders eased slightly. Over the year to 31 July 2026, one in 360 adults entered insolvency, a rate of 27.8 per 10,000, up from 24.3 per 10,000, or one in 412, a year before. Breathing Space registrations ran at 5,248 in the month, 38 percent below July 2025 after a large money advice provider changed its criteria. The mix matters for creditors, because bankruptcy, a debt relief order and an IVA each carry different consequences for what can be recovered and from whom. A rising annual rate, now one in 360 adults, means the pool of individuals a creditor might have to pursue is growing rather than shrinking.

What the Numbers Do Not Reveal

Aggregate figures do not tell a creditor where a particular debtor is or what stage they have reached. A judgment or an unpaid debt is only worth pursuing against someone you can actually locate and correctly identify in the first place. As personal insolvency rises, so does the chance that a debtor has moved, changed circumstances or already entered a formal procedure that changes what a creditor can lawfully do. That gap between the headline trend and the individual case is exactly where debtor tracing earns its place.

Where Debtor Tracing Fits Before You Act

Serving a statutory demand or a bankruptcy petition on the wrong address, or on someone who is already bankrupt or bound by an IVA, wastes cost and time. Confirming the current address, verifying identity and checking whether the individual is subject to an existing arrangement are the groundwork that keeps enforcement clean. Done properly, the exercise is fast, proportionate and fully within data protection law, and it gives the file a dated record that stands up if service is later disputed. Tremark explains the mechanics in its guide to how tracing agents find people.

How Debtor Tracing Works in Practice

A people tracing exercise draws on public records, credit footprints and other lawful sources to confirm where an individual lives and how to reach them, always on a legitimate basis for processing their data. For a solicitor the output is a documented, current address and identity that supports valid service and realistic enforcement, along with a clear view of whether the individual has already entered a procedure that would stop a petition in its tracks. What the July 2026 figures do not show is which debts sit behind them, so each creditor still has to establish the position for its own debtor before spending on a demand or a petition. Doing that groundwork first is what separates a wasted filing from a real recovery. The next monthly release is due on 18 September 2026.

If you need to locate and confirm a debtor before you serve or enforce, fill in the form below to get in touch with the Tremark team.

Frequently Asked Questions

Why is debtor tracing needed if I already have an address?

People move, and an old address means failed service and wasted costs. A trace confirms the current address and verifies identity so that service and enforcement stand up in front of the court.

Can tracing show whether a debtor is already insolvent?

Checks can flag whether an individual appears on the insolvency register or is subject to a formal procedure, which affects what a creditor can lawfully do next.

Is tracing an individual debtor lawful?

Yes, when it is carried out on a legitimate basis such as pursuing a genuine debt, using lawful sources and handling the data properly.

How current is the information?

A good trace uses the most recent data available and is dated, so a solicitor knows how fresh the confirmed address really is.