Monthly insolvency statistics – January 2023

Corporate Insolvencies

England and Wales

Total corporate insolvencies continue to rise when compared to corresponding months both post and pre-pandemic.  In January 2023 company insolvencies totalled 1,671. This was 7% higher than January 2022 (1,567) and 130% higher than January 2019. 

Creditors Voluntary Liquidations (“CVLs”) totalled 1,382, 2% higher than January 2022 and 8 times their levels in January 2019.

Compulsory Liquidations (“WUCs”) totalled 189, 52% higher than January 2022 and 235% higher than January 2019.

 There were 86 Administration appointments which is 21% higher than in January 2022 but 64% lower than January 2019.   

CVAs remain at low levels (14) in January 2023, 8% higher than January 2022 but 69% lower than January 2019.  

Scotland

In January 2023 there were 109 company insolvencies registered in Scotland,114% (2.1 times) higher than the number in January 2022 and 25% higher than in January 2019. This was comprised of 53 compulsory liquidations, 54 CVLs and 2 administrations. There were no receivership appointments or CVAs.

Northern Ireland

In January 2023 there were 14 company insolvencies registered in Northern Ireland, 22% lower than January 2022 and 13% lower than January 2019. This was comprised of nine CVLs, one compulsory liquidation and four CVAs. There were no administrations or receivership appointments.

Personal Insolvencies

England and Wales

Personal insolvency numbers continue to remain flat and show no signs of increasing in the short term, but this cannot be sustained for an indefinite period. With job losses and the cost-of-living crisis taking effect, personal insolvencies are almost certain to rise slowly in the coming months, and then show a more marked increase into the second half of 2023.

With 2020 / 2021 representing periods of distortion for longer terms statistical trends, it is more useful to consider 2019 monthly averages against the last 12 months’ average for the various personal insolvency procedures.

Unfortunately, Breathing Space (BS) application numbers have not been released for January, but they have hovered around 5,600 per month since inception. With clamping down on poor advice and better signposting by the regulated debt advice sector, we expect the BS monthly figure to be broadly replicated for January, before showing a steady upward trend into 2023.

There were 6,328 Individual Voluntary Arrangements (IVA’s) on average in the 3-month period to January, which is slightly below the usual 6,500-7,000 per month.

Average monthly IVA numbers have increased from 6,611 during 2019, to 7,317 in the last 12 months and IVA’s continue to drive trends and headlines in the wider personal insolvency statistics.

 

In 2019, there were 2,289 Debt Relief Orders (DRO’s) a month on average, and following the changes in entry criteria from June 2021, surprisingly they have only averaged around 2,000 per month. The January figure of 1,741 is also slightly down on that average, but we expect DRO’s to remain on a steady upward trajectory into 2023.

A “new” DRO would have previously been a bankruptcy and therefore, the record low bankruptcy numbers of 2021/22 were of no real surprise. The average monthly bankruptcy numbers in 2019 were 1,395, made up of 1,134 debtor’s applications and 261 creditor petitions. The stark decrease from that period to the current numbers is evident against the last 12-month averages of 558 bankruptcies, made up of 463 debtor’s applications and 96 creditor petitions per month.

However, in January, there were 612 bankruptcies, against a 2022 average of 556 per month. The number of debtor’s applications in January was the highest since March 2022, and we expect the bankruptcy numbers to steadily pick up into early 2023, showing a more marked increase into the second half of the year.

Bankruptcy petitions will undoubtedly have to be issued by creditors to recover debts incurred during the pandemic, and as a result of current economic pressures. In January, there were 94 creditors’ petitions, which is on par with the preceding 12 months’ average. We do expect to see creditor-driven bankruptcies begin to steadily increase in 2023.

Northern Ireland

In January 2023 there were 123 individual insolvencies in Northern Ireland, 26% higher than in January 2022, but 43% lower than January 2019. This consisted of 103 IVAs, 15 DROs and 5 bankruptcies.