Insolvency statistics released for October 2022
Corporate insolvencies have risen by over 15% since last month and personal insolvencies are up by nearly 5%
The number of registered company insolvencies in October 2022 was 1,948:
- 38% higher than in the same month in the previous year (1,410 in October 2021), and
- 32% higher than the number registered three years previously (pre-pandemic; 1,477 in October 2019).
There were 242 compulsory liquidations in October 2022, more than 4 times as many as in October 2021 and 2% higher than in October 2019. Numbers of compulsory liquidations have increased from historical lows seen during the coronavirus (COVID-19) pandemic, partly as a result of an increase in winding-up petitions presented by HMRC. October 2022 was the first time that the number of compulsory liquidations was similar to the pre-pandemic comparison month. This was partly caused by a large number of petitions from a single bank, which accounted for 45 of the compulsory liquidations in this month.
In October 2022 there were 1,594 Creditors’ Voluntary Liquidations (CVLs), 28% higher than in October 2021 and 53% higher than October 2019. Numbers of administrations and Company Voluntary Arrangements (CVAs) remained lower than before the pandemic.
For individuals, 531 bankruptcies were registered, which was 14% lower than in October 2021 and 62% lower than October 2019.
There were 1,894 Debt Relief Orders (DROs) in October 2022, which was 2% lower than October 2021 and 25% lower than the pre-pandemic comparison month (October 2019).
Corporate Insolvencies
Of the 1,948 registered company insolvencies in October 2022:
- There were 1,594 CVLs, which is 28% higher than in October 2021 and 53% higher than in October 2019;
- 242 were compulsory liquidations, which is 357% (4.6 times) higher than October 2021 and 2% higher than October 2019;
- Five were CVAs, which is 69% lower than October 2021 and 86% lower than October 2019;
- There were 107 administrations, which is 13% higher than October 2021 but 33% lower than October 2019; and
- There were no receivership appointments.
Between 26 June 2020 and 31 October 2022, in England & Wales, 40 moratoriums were obtained and 12 companies had a restructuring plan registered at Companies House. These two procedures were created by the Corporate Insolvency and Governance Act 2020.
Impact of COVID-19 business support measures
Lower numbers of compulsory liquidations is likely to be partly driven by government measures put in place to support businesses and individuals during the pandemic, including:
- Temporary restrictions on the use of statutory demands and certain winding-up petitions (leading to company compulsory liquidations).
- Enhanced government financial support for companies and individuals.
As the Insolvency Service does not record whether an insolvency is directly related to the coronavirus pandemic, it is not possible to state the direct effect of the pandemic on insolvency volumes.
Debt relief orders and bankruptcies
There were 1,894 DROs and 531 bankruptcies in October 2022 in England & Wales.
The bankruptcies were made up of 469 debtor applications and 62 creditor petitions. Monthly bankruptcy numbers over the past year were lower than the numbers in 2020, which were already lower than pre-pandemic levels.
Bankruptcies were 14% lower than in October 2021. Debtor applications were 9% lower and creditor petitions were 37% lower than October 2021.
Compared to October 2019, total bankruptcies were 62% lower; debtor applications were 60% lower and creditor petitions were 74% lower.
The number of DROs in October 2022 was 25% lower than in October 2019 and 2% lower than October 2021. DRO numbers increased following an eligibility change in June 2021 and for the past year have been slightly lower than pre-pandemic levels.
Individual voluntary arrangements
There were, on average, 7,610 IVAs registered per month in the three-month period ending October 2022, 8% higher than for the three-month period ending October 2021 and 13% higher than the three-months ending October 2019.
Breathing Space Registrations
In October 2022 there were 6,342 breathing space registrations. This is 31% higher than the number in October 2021.
Of the 6,342 Breathing Space registrations in October 2022:
- There were 6,230 Standard breathing space registrations, which is 31% higher than the number in October 2021.
- There were 112 Mental Health breathing space registrations, which is 38% higher than the number in October 2021.
We publish a summary of the reports here each month. For advice relating to support, insolvency or recovery options, please contact Isobel Brett for further information and guidance.
* This content and data was reported in full in the Insolvency Service Statistics for September 2022 published 15 November 2022 – see the full report here:https://www.gov.uk/government/statistics/monthly-insolvency-statistics-october-2022/commentary-monthly-insolvency-statistics-october-2022
Image source: The Insolvency Service Monthly insolvency statistics, Oct 2022