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Monthly Insolvency Statistics: January 2022

15th February, 2022

The Insolvency Service publish the latest release of its monthly series to provide more up to date information on the number of companies and individuals who are unable to pay debts and enter formal insolvency procedures due to the COVID-19 pandemic, as it continues. The release supplements the Insolvency Service’s quarterly company and individual Insolvency National Statistics.

Be aware that there have been Government measures put in place in response to the coronavirus pandemic, including temporary restrictions placed on the use of statutory demands and certain winding up petitions and enhanced government financial support for companies and individuals. There was also the Corporate Insolvency and Governance Act 2020 and for individuals, the Breathing Space scheme. As of 29 June 2021, monetary eligibility limits for Debt Relief Orders in England and Wales came into effect. All of these have a part to play in the statistics.

Note that some of these temporary measures have ended or been replaced, as of 30th September 2021.

Comparisons in data will be made throughout; comparing to pre-pandemic levels and during pandemic.

Company Insolvencies (UK)

In January 2022 there was a total of 1,560 registered company insolvencies across England and Wales, further broken down as follows:

  • 1,358 creditors voluntary liquidations (CVLs) – 122% higher than that in January 2021 and 34% higher than in January 2020
  • 71 administrations – 3% lower than that in January 2021 and 58% lower than in January 2020
  • 118 compulsory liquidations – 131% higher to that in January 2021, but 60% lower than January 2020
  • 13 company voluntary arrangements (CVAs) – 38% lower than in January 2021 and 59% lower than in January 2020
  • No receivership appointments

These figures are more than double that seen in January 2021 and 3% higher than that in the same month two years before (pre-pandemic). The overall increase in company insolvencies was thought to be due to a higher amount of CVLs, as has been a consistent pattern for months prior. It should be noted though that compulsory liquidation numbers were more than double that in January the previous year – a new pattern compared to previous months.

Note: between 26 June 2020 and 31 January 2022, fifteen companies were granted a moratorium and ten had restructuring plans sanctioned by the court. These procedures were created by the Corporate Insolvency and Governance Act 2020.

Company Insolvencies (Scotland)

January 2022 saw 51 company insolvencies in Scotland. Figures are made of 14 compulsory liquidations, 34 CVLs and 3 administrations. There were no receiverships or CVAs. These statistics are 122% higher than that of January 2021, but 30% lower than that of January 2020.

Historically, the number of company insolvencies registered in Scotland has been driven by compulsory liquidations but since April 2020, there have been over twice as many CVLS as compulsory liquidations.

Between 26 June 2020 and 31 January 2022, there were no moratoriums obtained in Scotland and two companies had a restructuring plan registered at Companies House. The Corporate Insolvency and Governance Act 2020 created these two procedures.

Company Insolvencies (Northern Ireland)

In January 2022, there were 18 company insolvencies in Northern Ireland – double that in December 2021. January’s figures comprised of 2 compulsory liquidations, 12 CVLs, 3 CVAs and 1 receivership. There were no administrations. The total figure here is six times as many as recorded in January 2021, but was 31% lower than in January 2020.

Touching on individual insolvencies….

For UK figures, there were a total of 1,873 Debt Relief Orders (DROs) recorded in January 2022 (Just one more than that recorded in December 2021!). Such statistics are 59% higher than in January 2021, but 15% lower than in January 2020. Note that as of 29 June 2021 some changes occurred to DRO eligibility which may have a part to play.

There were 575 bankruptcies for England and Wales in January 2022. The records are made up of 507 debtor applications and 68 creditor petitions. Monthly bankruptcy numbers between July and January 2022 were lower than that the year before, and pre-pandemic.

Compared to January 2021, bankruptcies were 32% lower, with debtor applications also 32% lower and creditor petitions 31% lower. When looking at 2020, figures were 63% lower for total bankruptcies, 61% lower for debtor applications and 72% lower for creditor petitions.

It was also found that there were 6,281 individual voluntary arrangements (IVAs) registered, on average, during the three months ending January 2022. This figure is 10% lower than the three-month period ending January 2021 but 5% higher than that ending January 2020.

When looking at the figures for Northern Ireland, January 2022 saw 98 individual insolvencies. This is 2% higher than that in January 2021, but 61% lower than in January 2020. This consisted of 77 IVAs, 9 DROs and 12 bankruptcies.

Find the full publication of statistics here.

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