Registered company bankruptcies in UK rose 21% in Nov’22
The number of registered company bankruptcies in the UK in November 2022 was 2,029, 21% higher than in the same month in the previous year (1,676 in November 2021), and 35% higher than the number registered three years previously (pre-pandemic; 1,505 in November 2019).
There were 290 compulsory liquidations in November 2022, more than 5 times as many as in November 2021 and 7% higher than in November 2019. Numbers of compulsory liquidations have increased from historical lows seen during the coronavirus (COVID-19) pandemic, partly as a result of an increase in winding-up petitions presented by HMRC. In October and November the numbers of compulsory liquidations were higher than the pre-pandemic comparison months, due to 95 petitions from a single bank.
In November 2022 there were 1,595 Creditors’ Voluntary Liquidations (CVLs), 5% higher than in November 2021 and 50% higher than November 2019. Numbers of administrations and Company Voluntary Arrangements (CVAs) remained lower than before the pandemic.
For individuals, 546 bankruptcies were registered, which was 16% lower than in November 2021 and 60% lower than November 2019.
There were 2,269 Debt Relief Orders (DROs) in November 2022, which was 10% higher than November 2021 but 4% lower than the pre-pandemic comparison month (November 2019).
There were, on average, 7,801 Individual Voluntary Arrangements (IVAs) registered per month in the three-month period ending November 2022, which is 11% higher than the three-month period ending November 2021, and 14% higher than the three-month period ending November 2019. IVA numbers have ranged from around 6,300 to 7,800 per month over the past year.
There were 6,796 Breathing Space registrations in November 2022, which is 40% higher than the number registered in November 2021. 6,689 were Standard breathing space registrations, which is 40% higher than in November 2021, and 107 were Mental Health breathing space registrations, which is 19% higher than the number in November 2021.
From the start of the coronavirus (COVID-19) pandemic until mid-2021, overall numbers of company and individual insolvencies were low when compared with pre-pandemic levels. This is likely to have been partly driven by government measures put in place to support businesses and individuals during this time. Company insolvency numbers have now returned to and exceeded pre-pandemic levels, but for individuals, numbers of bankruptcies and debt relief orders remain lower.
Also read: Understanding the Singapore bankruptcy laws
