Insolvency statistics released for Dec 2021
Insolvencies are higher than pre-pandemic levels
The number of registered company insolvencies in December 2021 was 1,486, which is:
- 20% higher than the number registered in the same month in the previous year (1,237 in December 2020), and
- 33% higher than the number registered two years previously (pre-pandemic; 1,120 in December 2019).
For individuals, 630 bankruptcies were registered, which was 33% lower than November 2020 and 54% lower than November 2019.
The latest monthly release of insolvency statistics for England and Wales was published on the 18th January 2022
Of the 1,486 registered company insolvencies in December 2021:
- There were 1,365 CVLs, which is 37% higher than in December 2020 and 73% higher than in December 2019;
- 42 were compulsory liquidations, which is 2% lower than December 2020, and 75% lower than December 2019;
- seven were CVAs, which is 84% lower than December 2020 and 67% lower than December 2019;
- There were 72 administrations, which is 52% lower than December 2020, and 49% lower than December 2019; and
- There were no receivership appointments.
Between 26 June 2020 and 31 December 2021, in England & Wales, 15 moratoriums were obtained and 10 companies had a restructuring plan registered at Companies House. These two new 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 1,872 DROs and 434 bankruptcies in December 2021 in England & Wales.
The number of DROs in December 2021 was 51% higher than in December 2020 but 10% lower than in December 2019. Changes to DRO eligibility came into effect on 29 June 2021, including an increase in the level of debt at which people can apply for a DRO from £20,000 to £30,000 (as indicated on Figure 2). The increase in the number of DROs registered since June 2021 is likely to have been caused by this expansion of the eligibility criteria.
The bankruptcies were made up of 380 debtor applications and 54 creditor petitions. Monthly bankruptcy numbers between July 2021 and December 2021 were lower than those in 2020, which were already lower than pre-pandemic levels.
Bankruptcies were 47% lower than in December 2020. Debtor applications were 49% lower and creditor petitions were 33% lower than in December 2020.
Compared to December 2019, total bankruptcies were 60% lower; debtor applications were 59% lower and creditor petitions were 66% lower.
Individual voluntary arrangements
There were, on average, 7,002 IVAs registered per month in the three-month period ending November 2021, 1% lower than for the three-month period ending November 2020 and 2% higher than the three-months ending November 2019.
Breathing Space Registrations
Between 4 May (when the scheme was launched) and 30 November 2021 there were 36,931 breathing space registrations. These composed of 36,411 standard breathing space registrations and 520 mental health breathing space registrations (for those receiving mental health crisis treatment).
In November 2021 there were 4,863 breathing space registrations. This was made up of 4,773 (98.1%) standard breathing space registrations and 90 (1.9%) mental health breathing space registrations.
Advice
We publish a summary of the reports here each month. For advice relating to support, insolvency or recovery options, please contact us.
* This content and data was reported in full in the Insolvency Service Statistics for December 2021 published 18th January 2022 – see the full report here:
Image source: The Insolvency Service Monthly insolvency statistics, Dec 2021