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Monthly Insolvency Statistics: May 2022

17 June 2022

Monthly Insolvency Statistics: May 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. 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).

Company Insolvencies (UK)

In May 2022 there was a total of 1,817 registered company insolvencies across England and Wales, further broken down as follows:

  • 1,584 creditors voluntary liquidations (CVLs) – 70% higher than that in May 2021 and 66% higher than in May 2019
  • 135 compulsory liquidations – 4 times higher compared to that in May 2021, but 50% lower than in May 2019
  • 84 administrations – 95% higher than in May 2021 but 12% lower than in May 2019
  • 14 company voluntary arrangements (CVAs) – More than double the amount in May 2021 but 55% lower than in May 2019
  • No receivership appointments

These figures are 79% higher than in May 2021 and 34% higher than that in the same month three years before (pre-pandemic). Compared to April 2022, figures were slightly less.

The overall increase in company insolvencies was said to be due to a higher amount of CVLs, as has been a consistent pattern for months prior. Alike what was seen in March 2022, a change to the normal pattern was seen, with there being more compulsory liquidations than administrations. 

Note: between 26 June 2020 and 31 May 2022, 38 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.

Company Insolvencies (Scotland)

May 2022 saw 93 company insolvencies in Scotland - just one more than that in April 2022. Figures comprised of 68 CVLs, 19 compulsory liquidations and 6 administrations. There were no receiverships or CVAs. These statistics are 82% higher than that in May 2021, and 19% higher than that of May 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 31 May 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 May 2022, there were 20 company insolvencies in Northern Ireland, comprising of 3 compulsory liquidations and 17 CVLs. There were no CVAs, administrations or receiverships. The total figure here is 2.6 times as many recorded in May 2021, but was 50% lower than in May 2019.

Touching on individual insolvencies….

For UK figures, there were a total of 2,030 Debt Relief Orders (DROs) recorded in May 2022. Such statistics are 33% higher than in May 2021, but 11% lower than in May 2019. Note that as of 29 June 2021 some changes occurred to DRO eligibility which may have a part to play.

There were 566 bankruptcies for England and Wales in May 2022. The records are made up of 497 debtor applications and 69 creditor petitions. Monthly bankruptcy numbers between July 2021 and May 2022 were lower than that the year before, and pre-pandemic.

Compared to May 2021, bankruptcies were 23% lower as were debtor applications. Creditor petitions were 19% lower than in May 2021. When looking at 2019, figures were 61% lower for total bankruptcies, 57% lower for debtor applications and 77% lower for creditor petitions.

It was also found that there were 7,812 ndividual voluntary arrangements (IVAs) registered, on average, during the three months ending May 2022. This figure is 6% higher than the three-month period ending May 2021 and 10% higher than that ending May 2019.

When looking at the figures for Northern Ireland, May 2022 saw 144 individual insolvencies. This is 26% lower than that in May 2021 and 39% lower than in May 2019. This consisted of 128 IVAs, 8 DROs and 8 bankruptcies.

Find the full publication of statistics here.

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