Company insolvencies in UK up 27% in June; individual bankruptcies up 29%
The number of registered company insolvencies in UK in June 2023 was 2,163, 27% higher than in the same month in the previous year (1,698 in June 2022). This was higher than levels seen while the government support measures were in place in response to the coronavirus (COVID-19) pandemic and also higher than pre-pandemic numbers.
There were 260 compulsory liquidations in June 2023, 77% higher than in June 2022. Numbers of compulsory liquidations have increased from historical lows seen during the coronavirus pandemic, partly as a result of an increase in winding-up petitions presented by HMRC.
In June 2023 there were 1,759 Creditors’ Voluntary Liquidations (CVLs), 21% higher than in June 2022. Numbers of administrations and Company Voluntary Arrangements (CVAs) were also higher than in June 2022.
Of the 2,163 registered company insolvencies in June 2023:
- There were 1,759 CVLs, which is 21% higher than in June 2022;
- 260 were compulsory liquidations, which is 77% higher than June 2022;
- 14 were CVAs, which is 75% higher than June 2022;
- There were 130 administrations, which is 44% higher than June 2022;
- There were no receivership appointments.
Individual Bankruptcies
For individuals, 643 bankruptcies in UK were registered, which was 29% higher than in June 2022, but less than half of pre-2020 levels.
There were 2,320 Debt Relief Orders (DROs) in June 2023, which was 21% higher than June 2022. Monthly DRO numbers between April and June 2023 were similar to pre-2020 levels.
There were, on average, 6,026 Individual Voluntary Arrangements (IVAs) registered per month in the three-month period ending June 2023, which is 22% lower than the three-month period ending June 2022. IVA numbers in the first half of 2023 were lower than in the first half of 2022.
There were 7,936 Breathing Space registrations in June 2023, which is 37% higher than the number registered in June 2022. 7,825 were Standard breathing space registrations, which is 38% higher than in June 2022, and 111 were Mental Health breathing space registrations, which is 31% higher than the number in June 2022.
From the start of the coronavirus (COVID-19) pandemic until mid-2021, overall numbers of company and individual insolvencies in UK 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 remain lower.
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