Insolvency statistics released for January 2022
Insolvencies are higher than pre-pandemic levels
The number of registered company insolvencies in January 2022 was 1, 560 which is:
- More than double the number registered in the same month in the previous year (758 in January 2021), and
- Similar to the number registered two years previously (pre-pandemic; 1,508 in January 2020).
For individuals, 575 bankruptcies were registered, which was 32% lower than in January 2021 and 63% lower than January 2020.
Corporate Insolvencies
Of the 1,560 registered company insolvencies in January 2022:
- There were 1,358 CVLs, which is 122% (2.2 times) higher than in January 2021 and 34% higher than in January 2020;
- 118 were compulsory liquidations, which is 131% (2.3 times) higher than January 2021, but 60% lower than January 2020;
- 13 were CVAs, which is 38% lower than January 2021 and 59% lower than January 2020;
- There were 71 administrations, which is 3% lower than January 2021 and 58% lower than January 2020; and
There were no receivership appointments.
Between 26 June 2020 and 31 January 2022, 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 1,873 Debt Relief Orders (DROs) in January 2022. Following changes to the eligibility criteria 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, DRO numbers were higher between July 2021 and January 2022 than in previous months since the start of the COVID-19 pandemic. The number of DROs registered in January 2022 was 59% higher than in January 2021 but remained lower than pre-pandemic levels (15% lower than in January 2020).
Individual voluntary arrangements
There were, on average, 6,281 IVAs registered per month in the three-month period ending January 2022, which is 10% lower than the three-month period ending January 2021, but 5% higher than the three-month period ending January 2020. IVA numbers have remained fairly stable at around 6,000 to 7,000 per month over the past year.
Breathing Space Registrations
Between the launch of the Breathing Space scheme on 4 May 2021, and 31 January 2022, there were 46,406 registrations, comprised of 45,710 Standard breathing space registrations and 696 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 January 2022 published 18th January 2022 – see the full report here:
Monthly Insolvency Statistics, January 2022 – GOV.UK (www.gov.uk)
Image source: The Insolvency Service Monthly insolvency statistics, January 2022