Insolvency statistics released for October 2021
The number of registered company insolvencies in October 2021 was 1,405 which is at the same level as pre-pandemic figures
The latest monthly release of insolvency statistics for England and Wales was published on the 16 October 2021. *
Overall, the numbers of registered company insolvencies is now similar to pre-pandemic levels, driven by a high number of CVLs. The number of registered CVLs was 1,248 which is the highest it has been since January 2019.
Of the 1,405 registered company insolvencies in October 2021:
- There were 1,248 CVLs, which is 85% higher than in October 2020 and 19% higher than in October 2019;
- 46 were compulsory liquidations, which is 31% lower than October 2020 and 81% lower than October 2019;
- 16 were CVAs, which is 24% lower than October 2020 and 56% lower than October 2019;
- There were 95 administrations, which is 8% lower than October 2020 and 40% lower than October 2019; and
- There were no receivership appointments.
Between 26 June 2020 and 31 October 2021, 15 moratoriums were obtained and nine 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 1,937 DROs and 601 bankruptcies in October 2021 in England & Wales.
The number of DROs in October 2021 was 23% higher than in October 2020 but 23% lower than in October 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. 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 518 debtor applications and 83 creditor petitions. The monthly total is the lowest in the series, which goes back to January 2019.
Bankruptcies were 44% lower than in October 2020. Debtor applications were 47% lower and creditor petitions were 22% lower than in October 2020.
Compared to October 2019, total bankruptcies were 57% lower; debtor applications were 56% lower and creditor petitions were 65% lower.
Individual voluntary arrangements
There were, on average, 7,031 IVAs registered per month in the three-month period ending October 2021, 14% higher than for the three-month period ending October 2020 and 4% higher than the three-months ending October 2019.
Breathing Space
Between 4 May (when the scheme was launched) and 31 October 2021 there were 32,082 breathing space registrations. These composed of 31,651 standard breathing space registrations and 431 mental health breathing space registrations (for those receiving mental health crisis treatment).
In October 2021 there were 4,836 breathing space registrations. This was made up of 4,755 (98.3%) standard breathing space registrations and 81 (1.7%) 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 October 2021 published 16 November 2021 – see the full report here:
Commentary – Monthly Insolvency Statistics October 2021 – GOV.UK (www.gov.uk)
Image source: The Insolvency Service Monthly insolvency statistics, October 2021