Monthly insolvency statistics – November 2021

Corporate insolvencies

England and Wales

Total corporate insolvencies increased by 19% this month to 1,674. Once again, this was driven by a 22% increase in CVLs which totalled 1,521. CVLs are now 43% higher than they were pre-Pandemic in November 2019 and 99% higher than they were in November 2020.

Compulsory Liquidations (50) continue to be significantly lower than they were pre-Pandemic but are now 32% higher than they were in November 2020. Interestingly, HMRC was the petitioning creditor in 12% of these WUCs which is the most active they have been in the last 12 months.

Administrations remain relatively steady with 93 companies entering this process in November 2021 which is 38% lower than the number registered pre-Pandemic in November 2019. CVAs remain low with only 10 registered in November 2021.

Scotland

In November 2021 there were 104 company insolvencies registered in Scotland, more than twice the number in November 2020 and 19% higher than in November 2019. This was comprised of 21 compulsory liquidations, 76 CVLs and 7 administrations. There were no CVAs or receivership appointments. Historically, the volume of company insolvencies registered in Scotland has been driven by compulsory liquidations. However, since April 2020, there have been more than twice as many CVLs as compulsory liquidations.

Northern Ireland

In November there were 9 company insolvencies registered in Northern Ireland, 29% higher than in November 2020 but 71% lower than November 2019. This is comprised of one administration, two compulsory liquidations and six CVLs. There were no CVAs or receivership appointments.

Personal Insolvencies

England and Wales

The personal insolvency statistics for November 2021 reveal that there were only 630 bankruptcy orders made in the month, a new historical low, 33% lower than November 2020 and 54% lower than November 2019. 

The 2,054 Debt Relief Orders (DROs) in November 2021 were 44% higher than November 2020 but remained lower than pre-pandemic levels.

In 2021, there were an average of around 1,400 DROs per month before the criteria were widened, and an average of 1,770 per month after the changes. As we have stated previously, this increase is largely a result of those “bankruptcies” which have now become eligible to be a DRO.

The monthly trend of around 7,000 Individual Voluntary Arrangements (IVAs) being registered continued (7,002) and the overall trend remains flat.

Breathing Space

Since the launch of the Breathing Space (BS) legislation, there have been 36,931 registrations, with 36,411 Standard BS and 520 Mental Health BS registrations.

The low numbers across the board can be attributed to a whole range of factors and variables, but the main drivers will be the continued support from the state, forbearance from creditors, many of who will have introduced their own in-house versions of BS, and the general lack of pressure on the indebted to take the next positive step into one of these formal procedures.

Although the general mood is that the above scenario is unsustainable, it is likely that the fallout will be slow and the numbers will likely creep up month on month, rather than demonstrating any significant increases over a short period.

In summer 2021, many were predicting the turn of the year as the point at which personal insolvency numbers would noticeably increase, but a safer bet might well be the late spring and summer of 2022, especially as the effects of the Omicron variant on certain sector’s employees becomes apparent.

Northern Ireland

In November 2021 there were 193 individual insolvencies in Northern Ireland, more than double the number in November 2020 but 32% lower than November 2019. This consisted of 165 IVAs, 18 DROs and 10 bankruptcies.