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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. The release supplements the Insolvency Service’s quarterly company and individual Insolvency National Statistics.
Be aware that Government measures were put in place in response to the coronavirus pandemic, including temporary restrictions 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. This being said, it should be made aware that the majority of these measures have been lifted or replaced now.
Comparisons in data will be made throughout, comparing to pre-pandemic levels (2019) and during pandemic (2021).
In June 2022 there was a total of 1,691 registered company insolvencies across England and Wales, further broken down as follows:
These figures are 40% higher than in June 2021 and 15% higher than that in the same month three years before (pre-pandemic).
The overall increase in company insolvencies has been due to a higher amount of CVLs. This trend has been apparent over the last few months since March. In addition compulsory liquidations have also shown an unpward trend.
Note: between 26 June 2020 and 30 June 2022, 39 companies were granted a moratorium and 12 had restructuring plans sanctioned by the court. These procedures were created by the Corporate Insolvency and Governance Act 2020.
June 2022 saw 76 company insolvencies in Scotland. Figures comprised of 67 CVLs, 8 compulsory liquidations and 1 administration. There were no receiverships or CVAs. These statistics matched that in June 2021, and were 12% higher than that of June 2019.
Historically, the number of company insolvencies registered in Scotland has been driven by compulsory liquidations but since April 2020, there have been almost three times as many CVLS as compulsory liquidations.
Between 26 June 2020 and 30 June 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.
In June 2022, there were 26 company insolvencies in Northern Ireland, comprising of 11 compulsory liquidations and 12 CVLs, 2 CVAs and 1 administration. There were no receiverships. The total figure here is 2.4 times as many recorded in June 2021, but was 10% lower than in June 2019.
For UK figures, there were a total of 1,815 Debt Relief Orders (DROs) recorded in June 2022. Such statistics are 28% higher than in June 2021, but 14% lower than in June 2019. Note that as of 29 June 2021 some changes occurred to DRO eligibility which may have a part to play.
There were 471 bankruptcies for England and Wales in June 2022. The records are made up of 401 debtor applications and 70 creditor petitions. Monthly bankruptcy numbers between July 2021 and June 2022 were lower than that the year before, and pre-pandemic.
Compared to June 2021, bankruptcies were 37% lower and debtor applications 38% lower. Creditor petitions were 33% lower than in June 2021. When looking at 2019, figures were 64% lower for total bankruptcies, 61% lower for debtor applications and 74% lower for creditor petitions.
It was also found that there were 7,575 individual voluntary arrangements (IVAs) registered, on average, during the three months ending June 2022. This figure is 6% higher than the three-month period ending June 2021 and 17% higher than that ending June 2019.
When looking at the figures for Northern Ireland, June 2022 saw 134 individual insolvencies. Just 10 less than seen in May 2022. Compared to June 2021 statistics, this is 18% lower and 30% lower than in June 2019. This consisted of 101 IVAs, 17 DROs and 16 bankruptcies.
Find the full publication of statistics here.