Insolvency statistics released for November 2022
High corporate insolvencies are driven by an increasing number of CVLs and Compulsory Liquidations
The number of registered company insolvencies in November 2022 was 2,029:
- 21% higher than in the same month in the previous year (1,676 in November 2021), and
- 35% higher than the number registered three years previously (pre-pandemic; 1,505 in November 2019).
There were 290 compulsory liquidations in November 2022, more than 5 times as many as in November 2021 and 7% higher than in November 2019. Numbers of compulsory liquidations have increased from historical lows seen during the coronavirus (COVID-19) pandemic, partly as a result of an increase in winding-up petitions presented by HMRC. In October and November the numbers of compulsory liquidations were higher than the pre-pandemic comparison months, due to 95 petitions from a single bank.
In November 2022 there were 1,595 Creditors’ Voluntary Liquidations (CVLs), 5% higher than in November 2021 and 50% higher than November 2019. Numbers of administrations and Company Voluntary Arrangements (CVAs) remained lower than before the pandemic.
For individuals, 546 bankruptcies were registered, which was 16% lower than in November 2021 and 60% lower than November 2019.
There were 2,269 Debt Relief Orders (DROs) in November 2022, which was 10% higher than November 2021 but 4% lower than the pre-pandemic comparison month (November 2019).
There were, on average, 7,801 Individual Voluntary Arrangements (IVAs) registered per month in the three-month period ending November 2022, which is 11% higher than the three-month period ending November 2021, and 14% higher than the three-month period ending November 2019. IVA numbers have ranged from around 6,300 to 7,800 per month over the past year.
Note that the IVA series is historically volatile as it is based on date of registration at the Insolvency Service
Corporate Insolvencies
Of the 2,029 registered company insolvencies in November 2022:
- There were 1,595 CVLs, which is 5% higher than in November 2021 and 50% higher than in November 2019;
- 290 were compulsory liquidations, which is 437% (5.4 times) higher than November 2021 and 7% higher than November 2019;
- 10 were CVAs, which is the same as November 2021 but 52% lower than November 2019;
- There were 134 administrations, which is 44% higher than November 2021 but 11% lower than November 2019; and
- There were no receivership appointments.
Between 26 June 2020 and 30 November 2022, in England & Wales, 40 moratoriums were obtained and 12 companies had a restructuring plan registered at Companies House. These two 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 2,269 DROs and 546 bankruptcies in November 2022 in England & Wales.
The bankruptcies were made up of 445 debtor applications and 101 creditor petitions. Monthly bankruptcy numbers over the past year were lower than the numbers in 2020, which were already lower than pre-pandemic levels.
Bankruptcies were 16% lower than in November 2021. Debtor applications were 19% lower but creditor petitions were 2% higher than November 2021.
Compared to November 2019, total bankruptcies were 60% lower; debtor applications were 61% lower and creditor petitions were 56% lower.
The number of DROs in November 2022 was 4% lower than in November 2019 and 10% higher than November 2021. DRO numbers increased following an eligibility change in June 2021 and for the past year have been slightly lower than pre-pandemic levels
Individual voluntary arrangements
There were, on average, 7,801 IVAs registered per month in the three-month period ending November 2022, 11% higher than for the three-month period ending November 2021 and 14% higher than the three-months ending November 2019.
Breathing Space Registrations
In November 2022 there were 6,796 breathing space registrations. This is 40% higher than the number in November 2021.
Of the 6,796 Breathing Space registrations in November 2022:
- There were 6,689 Standard breathing space registrations, which is 40% higher than the number in November 2021.
- There were 107 Mental Health breathing space registrations, which is 19% higher than the number in November 2021.
We publish a summary of the reports here each month. For advice relating to support, insolvency or recovery options, please contact Isobel Brett for further information and guidance.
* This content and data was reported in full in the Insolvency Service Statistics for November 2022 published 14 December 2022 – see the full report here:Commentary – Monthly Insolvency Statistics November 2022 – GOV.UK (www.gov.uk)
Image source: The Insolvency Service Monthly insolvency statistics, Nov 2022