Insolvency statistics released for September 2021
The number of registered company insolvencies in September 2021 was 1,446 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 15 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 1,328 which is the highest it has been since January 2019.
Of the 1,446 registered company insolvencies in September 2021:
- There were 1,328 CVLs, which is 80% higher than in September 2020 and 21% higher than in September 2019;
- 25 were compulsory liquidations, which is 49% lower than September 2020 and 89% lower than September 2019. This is the lowest level in the time series;
- 12 were CVAs, which is 61% lower than September 2020 and 45% lower than September 2019;
- There were 81 administrations, which is 26% lower than September 2020 and 49% lower than September 2019; and
- There were no receivership appointments.
Between 26 June 2020 and 30 September 2021, 14 companies obtained a moratorium 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 2,150 DROs and 614 bankruptcies in September 2021 in England & Wales.
The number of DROs in September 2021 was the highest seen since the start of the pandemic. This was 41% higher than in September 2020 but 12% lower than in September 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 in September 2021 is likely to have been caused by this expansion of the eligibility criteria.
The bankruptcies were made up of 553 debtor applications and 61 creditor petitions. The monthly total is the lowest in the series, which goes back to January 2019.
Bankruptcies were 42% lower than in September 2020. Debtor applications were 43% lower and creditor petitions were 34% lower than in September 2020.
Compared to September 2019, total bankruptcies were 55% lower; debtor applications were 50% lower and creditor petitions were 76% lower.
Compared to August 2019, total bankruptcies were 54% lower; debtor applications were 50% lower and creditor petitions were 73% lower.
Individual voluntary arrangements
There were, on average, 6,853 IVAs registered per month in the three-month period ending September 2021, 48% higher than for the three-month period ending September 2020 but 9% lower than the three-months ending September 2019.
Breathing Space
Between 4 May (when the scheme was launched) and 30 September 2021 there were 27,246 breathing space registrations. These composed of 26,896 standard breathing space registrations and 350 mental health breathing space registrations (for those receiving mental health crisis treatment).
In September 2021 there were 5,098 breathing space registrations. This was made up of 5,014 (98.4%) standard breathing space registrations and 84 (1.6%) mental health breathing space registrations.
Note that the IVA series is historically volatile as it is based on date of registration at the Insolvency Service (see the Data Sources and Methodology section for more information).
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 September 2021 published 2021 – see the full report here:https://www.gov.uk/government/statistics/monthly-insolvency-statistics-september-2021/commentary-monthly-insolvency-statistics-september-2021
Image source: The Insolvency Service Monthly insolvency statistics, September 2021