Insolvency statistics released for February 2022
Insolvencies are higher than pre-pandemic levels
The number of registered company insolvencies in February 2022 was 1,515:
- More than double the number registered in the same month in the previous year (685 in February 2021), and
- 13% higher than the number registered two years previously (pre-pandemic; 1,346 in February 2020).
For individuals, 588 bankruptcies were registered, which was 36% lower than in February 2021 and 62% lower than February 2020.
Corporate Insolvencies
Of the 1,515 registered company insolvencies in February 2022:
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- There were 1,329 CVLs, which is 125% (2.25 times) higher than in February 2021 and 40% higher than in February 2020;
- 74 were compulsory liquidations, which is 124% (2.25 times) higher than February 2021, but 68% lower than February 2020;
- three were CVAs, which is 50% lower than February 2021 and 84% lower than February 2020;
- There were 109 administrations, which is 95% higher than February 2021 but 26% lower than February 2020; and
There were no receivership appointments.
Between 26 June 2020 and 28 February 2022, in England & Wales, 33 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 2,242 DROs and 588 bankruptcies in February 2022 in England & Wales.
The number of DROs in February 2022 was 61% higher than in February 2021, but 6% lower than in February 2020. 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 3). The increase in the number of DROs registered since June 2021 is likely to have been caused by this expansion of the eligibility criteria.
Individual voluntary arrangements
There were, on average, 6,384 IVAs registered per month in the three-month period ending February 2022, 4% higher than for the three-month period ending February 2021 and 15% higher than the three-months ending February 2020.
Breathing Space Registrations
Between 4 May (when the scheme was launched) and 28 February 2022 there were 52,201 breathing space registrations. These composed of 51,415 standard breathing space registrations and 786 mental health breathing space registrations (for those receiving mental health crisis treatment).
In February 2022 there were 5,795 breathing space registrations. This was made up of 5,705 (98.4%) standard breathing space registrations and 90 (1.6%) 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 February 2022 published 15 March 2022 – see the full report here:
Monthly Insolvency Statistics, Feb 2022 – GOV.UK (www.gov.uk)
Image source: The Insolvency Service Monthly insolvency statistics, February 2022