Insolvency statistics released for Nov 2021
Insolvencies are higher than pre-pandemic levels for the first time.
For the first time since the start of the coronavirus (COVID-19) pandemic, the monthly number of registered company insolvencies was higher than pre-pandemic levels. This was driven by the higher number of creditors’ voluntary liquidations (CVLs). In November 2021 there were 1,521 CVLs, 43% higher than in November 2019. Other types of company insolvencies, such as compulsory liquidations, remained lower than before the pandemic.
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 17th December 2021. *
Of the 1,674 registered company insolvencies in November 2021:
- There were 1,521 CVLs, which is double the number in November 2020 and 43% higher than in November 2019;
- 50 were compulsory liquidations, which is 32% higher than November 2020, but 82% lower than November 2019;
- 10 were CVAs, which is 33% lower than November 2020 and 52% lower than November 2019;
- There were 93 administrations, which is 27% higher than November 2020, but 38% lower than November 2019; and
- There were no receivership appointments.
Between 26 June 2020 and 30 November 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 2,054 DROs and 630 bankruptcies in November 2021 in England & Wales.
The number of DROs in November 2021 was 44% higher than in November 2020 but 13% lower than in November 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 552 debtor applications and 78 creditor petitions. Monthly bankruptcy numbers between July and November 2021 were lower than those in 2020, which were already lower than pre-pandemic levels.
Bankruptcies were 33% lower than in November 2020. Debtor applications were 34% lower and creditor petitions were 29% lower than in November 2020.
Compared to November 2019, total bankruptcies were 54% lower; debtor applications were 51% 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
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 November 2021 published 17 December 2021 – see the full report here:
Commentary – Monthly Insolvency Statistics Nov 2021 – GOV.UK (www.gov.uk)
Image source: The Insolvency Service Monthly insolvency statistics, Nov 2021