Monthly insolvency statistics – June 2022

Corporate Insolvencies

There were 1,691 company insolvencies in June 22 which represents a 40% increase when compared to June 21 and 15% higher than June 19 (pre-Pandemic). However, this number is a 7% decrease in the number of company insolvencies in May 22.

England and Wales

There were 1,456 CVLs, which is 30% higher than in June 2021 and 44% higher than in June 2019.

Most notably, there were 136 compulsory liquidations (i.e. when a creditor forces a company into liquidation) in June 2022 which is 258% higher than in June 2021. We are slowly seeing HMRC becoming more proactive in pursuing companies for unpaid tax. However, compulsory liquidations remain more than 50% lower than pre-Pandemic figures.

There were 90 administrations in June 2022 which is 131% higher than 12 months ago but they are still 40% lower than June 2019.

CVAs remain at low levels with 8 registered in June 2022, which is 43% lower than in June 2021 and 77% lower than June 2019. 

Scotland

In June 2022 there were 76 company insolvencies registered in Scotland, equal to the number in June 2021 but 12% higher than in June 2019. This was comprised of eight compulsory liquidations, 67 CVLs, and one administration. There were no CVAs or receivership appointments.

Northern Ireland 

In June 2022 there were 26 company insolvencies registered in Northern Ireland, 2.4 times as many as in June 2021, but 10% lower than June 2019. This was comprised of 11 compulsory liquidations, 12 CVLs, one administration and two CVAs. 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 June, Debt Relief Orders (DROs) were slightly above the 2021 average of around 1,700 per month, with a June figure of 1,815. Following the changes in criteria, allowing easier entry into a DRO from June 2021, it is starting to be reflected in the upturn in the monthly figures.

A “new” DRO would have previously been a bankruptcy and therefore, the continued dip in bankruptcy numbers is no real surprise. In June, there were only 471 bankruptcies, which was 37% lower than in June 2021, against an average of around 800 per month during the pandemic, and a six-month average of 576.

Bankruptcies are at historical lows and the decrease in debtors making their own application in June (around 401 opposed to pandemic levels of 700 per month) is a result of those who are now eligible to choose a DRO instead. Again, this number is down on the six-month average of 485.

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 70 creditors’ petitions, which is down on the six-month average of 91.

There was a six-month average of 7,355 Individual Voluntary Arrangements (IVA’s) recorded in June, which is similar to pre-pandemic levels. IVA’s have fluctuated between around 6,300 and 7,800 IVA’s registered per month.

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 5,000 per month since inception in May 2021. June 2022 saw a slight upturn from recent months in the Standard BS figures to 5,687 applications, which is in line with the six-month average of 5,612, however the 85 Mental Health BS applications were slightly down on the six-month average of 97 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 and we expect a more marked increase in the next six months than the first six months of this year.

Northern Ireland

In June 2022 there were 134 individual insolvencies in Northern Ireland, 18% lower than in June 2021, and 30% lower than June 2019. This consisted of 101 IVAs, 17 DROs and 16 bankruptcies.