Monthly insolvency statistics – April 2022

Corporate Insolvencies

England and Wales

Total corporate insolvencies in April were 1,991.  This is more than double April 2021 (925) and the Insolvency Service noted that it is 39% higher than April 2019 (a year before the Covid-19 pandemic).  The statistics published by the Insolvency Service continue the trend of recent months reflecting the return to pre-pandemic levels.

Creditors Voluntary Liquidations (“CVLs”) totalled 1,777 and were more than double April 2021 and 74% higher than in (pre-pandemic) April 2019.

Compulsory Liquidations (“WUCs”) (91) continue to be significantly lower (61%) than they were pre-pandemic but 3 times higher when compared to April 2021. This further supports the upward trend and the return to pre-pandemic levels.

Administrations totalled 113 which is 51% higher than in April 2021 but 22% lower than pre-pandemic levels.  The increase in corporate insolvencies continues to be driven by Liquidations.

CVAs remain at low levels with 10 registered in April 2022, this was double April 2021 but 62% lower than April 2019. 

 

Scotland

In April 2022 there were 92 company insolvencies registered in Scotland, 142% (2.4 times) higher than April 2021 but 10% lower than in April 2019. This was comprised of 17 compulsory liquidations, 73 CVLs, one administration and one CVA. There were no receivership appointments.

Northern Ireland

In April 2022 there were 13 company insolvencies registered in Northern Ireland, 2.6 times as many as in April 2021, but 32% lower than April 2019. This was comprised of six compulsory liquidations, four CVLs, two administrations and one CVA. There were no receivership appointments.

Personal Insolvencies

England and Wales

Personal Insolvency numbers continue to show some interesting trends as we move out of the pandemic.

In April, Debt Relief Orders (DROs) reverted to the 2021 average of around 1,700 per month, with an April figure of 1,708. The changes in criteria, allowing easier entry into a DRO from June 2021, were starting to be reflected in the upturn in the monthly figures, so this month is probably an anomaly.

A “new” DRO would have previously been a bankruptcy and therefore, the continued dip in bankruptcy numbers is no real surprise. In April, there were only 530 bankruptcies, against an average of around 800 per month during the pandemic. Bankruptcies are at historical lows and the decrease in debtors making their own application in April (around 443 opposed to pandemic levels of 700 per month) is a result of those who are now eligible to choose DRO instead.

However, there is a queue of creditors waiting to issue bankruptcy petitions and these will be processed through the Court system over the coming months. We do expect to see creditor-driven bankruptcies begin to close the deficit in bankruptcy numbers generally created by those debtors now choosing a DRO. However, this month there were only 87 creditors’ petitions, which is still down on recent averages.

There was a three-month average total of 7,516 Individual Voluntary Arrangements (IVA’s) in April, which is just above the normal monthly average for the last few years. IVA’s have fluctuated, but a flat line can be plotted through the peaks and troughs, which shows around 6,500 and 7,000 IVA’s registered per month.

Northern Ireland

In April 2022 there were 162 individual insolvencies in Northern Ireland, 28% lower than in April 2021, and 51% lower than April 2019. This consisted of 144 IVAs, 14 DROs and four bankruptcies.

Breathing Space

Since the launch of the Breathing Space (BS) legislation, there have been 46,407 registrations (averaging 5,156 per month), with 45,710 Standard BS and 697 Mental Health. BS registrations.

Breathing Space (BS) applications have hovered around the 5,000 per month mark since inception in May 2021. April saw a slight downturn from recent months in the Standard BS figures to 5,282 applications, but the 106 Mental Health BS applications were also slightly up from the previous average of around 80 per month. BS is still showing no signs of producing the predicted users, but it is providing a useful mechanism to pause and take stock, which is its very purpose.

With fuel and energy prices still volatile and the cost-of-living crisis beginning to take effect, the number of personal insolvencies nationally are almost certain to continue to rise in the coming months.