Insolvency statistics released for May 2022
High insolvency rates are driven by the increasing number of CVLs
The number of registered company insolvencies in May 2022 was 1,817:
- 79% higher than in the same month in the previous year (1,014 in May 2021), and
- 34% higher than the number registered three years previously (pre-pandemic; 1,352 in May 2019).
For individuals, 566 bankruptcies were registered, which was 23% lower than in May 2021 and 61% lower than May 2019.
Corporate Insolvencies
Of the 1,817 registered company insolvencies in May 2022:
- There were 1,584 CVLs, which is 70% higher than in May 2021 and 66% higher than in May 2019;
- 135 were compulsory liquidations, which is 297% (4 times) higher than May 2021, but 50% lower (half the number) than May 2019;
- 14 were CVAs, which is more than double the amount in May 2021 but 55% lower than May 2019;
- There were 84 administrations, which is 95% higher than May 2021 but 12% lower than May 2019; and
- There were no receivership appointments.
Between 26 June 2020 and 31 May 2022, in England & Wales, 38 moratoriums were obtained and 12 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 2,030 DROs and 566 bankruptcies in May 2022 in England & Wales.
The bankruptcies were made up of 497 debtor applications and 69 creditor petitions. Monthly bankruptcy numbers between July 2021 and May 2022 were lower than the numbers in 2020, which were already lower than pre-pandemic levels.
Bankruptcies were 23% lower than in May 2021. Debtor applications were 23% lower and creditor petitions were 19% lower than May 2021.
Compared to May 2019, total bankruptcies were 61% lower; debtor applications were 57% lower and creditor petitions were 77% lower.
Individual voluntary arrangements
There were, on average, 7,812 IVAs registered per month in the three-month period ending May 2022, 6% higher than for the three-month period ending May 2021 and 10% higher than the three-months ending May 2019.
Breathing Space Registrations
In May 2022 there were 5,749 breathing space registrations. This is 6% lower than the number in May 2021.
Of the 5,749 Breathing Space registrations in May 2022:
- There were 5,638 Standard breathing space registrations, which is 7% lower than the number in May 2021.
- There were 111 Mental Health breathing space registrations, which is 136% higher than the number in May 2021.
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 May 2022 published 17 June 2022 – see the full report here:
Monthly Insolvency Statistics, May 2022 – GOV.UK (www.gov.uk)
Image source: The Insolvency Service Monthly insolvency statistics, May 2022