Monthly insolvency statistics – March 2022

Corporate Insolvencies

England and Wales

Total corporate insolvencies increased by 35% this month to 2,114.  It is notable that this total is 116% higher than March 2021 (999) and the Insolvency Service noted that it is 34% higher than March 2019 (a year before the Covid-19 pandemic).  The statistics published by the Insolvency Service reflect the return to more usual levels of insolvencies for the post-pandemic period when compared with the data from prior to March 2020.

Creditor's Voluntary Liquidations (“CVLs”) totalled 1,844 and were 109% higher when compared to figures from March 2021 and 62% higher than in (pre-pandemic) March 2019.

Compulsory Liquidations (“WUCs”) (131) continue to be significantly lower than they were pre-pandemic but almost four times higher when compared to March 2021. This further supports the upward trend and the return to pre-pandemic levels.

Administrations totalled 129 which is 74% higher than in March 2021 but lower than pre-pandemic levels.  

CVAs remain at low levels with ten registered in March 2022, the same as March 2021 and 66% lower than March 2019. 

 

Scotland

In March 2022 there were 86 company insolvencies registered in Scotland, 100% (2 times) higher than March 2021 but 11% lower than in March 2019. This was comprised of nine compulsory liquidations, 71 CVLs and six administrations. There were no CVAs or receivership appointments.

Northern Ireland

In March 2022 there were 20 company insolvencies registered in Northern Ireland, almost three times as many as in March 2021, but 35% lower than in March 2019. This was comprised of seven compulsory liquidations, 12 CVLs and one administration. There were no CVAs and 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 March, Debt Relief Orders (DROs) climbed from a 2021 average of around 1,700 per month to a March figure of 2,512. The changes in criteria, allowing easier entry into a DRO from June 2021, are now starting to be reflected in the upturn in the monthly figures and this has now taken the DRO figures back to pre-pandemic levels for the first time.

A “new” DRO would have previously been bankruptcy and therefore, the continued dip in bankruptcy numbers is no real surprise. In March, there were only 633 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 March (around 549 as opposed to pandemic levels of 700 per month) is a result of those who are now eligible to choose a 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 choosing a DRO. However, this month there were only 84 creditors’ petitions, which is still down on recent averages.

The Individual Voluntary Arrangements (IVA) three month rolling average in March was a total of 7,136, 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.

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. March saw an upturn in the Standard BS figures to 6,261 applications and the 122 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 is almost certain to continue to rise in the coming months.

Northern Ireland

In February 2022 there were 162 individual insolvencies in Northern Ireland, 13% higher than in February 2021, but 40% lower than February 2020. This consisted of 122 IVAs, 23 DROs and 17 bankruptcies.