David Alexander, head of debt recovery at full-service law firm Gilson Gray, said: “The latest figures present a mixed picture. On the one hand, corporate insolvencies have fallen significantly compared with the same period last year, down by almost 28% which will be welcome news for many businesses. However, insolvency levels remain above those seen before the pandemic, and it would be premature to view this as a sign that trading conditions have fundamentally improved.

“While the reduction in creditors’ voluntary and compulsory liquidations suggests fewer businesses are reaching the point of formal insolvency, many companies continue to operate under considerable financial pressure. Higher borrowing costs over recent years, ongoing debt repayments, and persistent cost pressures continue to weigh on cash flow. In some cases, businesses may simply be delaying difficult decisions while hoping market conditions improve.

“On the personal side, the continued rise in bankruptcies and protected trust deeds, alongside a further increase in moratorium applications, demonstrates that many households are still struggling with the cost of living and existing debt commitments. Although the revised bankruptcy fee structure has made formal insolvency more accessible for those with limited means, the underlying trend reflects continued financial strain rather than an improvement in financial resilience.

“Taken together, these figures show that while corporate insolvencies have eased in the short term, financial pressures have by no means disappeared. For both individuals and businesses, seeking professional advice at the earliest opportunity remains the best way to address debt issues before they escalate into more serious financial difficulties.”