Corporate insolvencies update
28th February, 2022
With restrictions now eased we are perhaps beginning to see the cost and effect of the pandemic on businesses starting to emerge, with the total number of corporate insolvencies now back at levels similar to those we saw pre-pandemic.
The January 2022 official insolvency statistics tell us:
- January 2022 saw 1,358 creditors’ voluntary liquidations (CVLs) more than double the number in January 2021 and 34% higher than January 2020
- There were 118 compulsory liquidations in January 2022, which was 131% higher than January 2021, but still 60% lower than January 2020.
- Company voluntary arrangements (CVAs) – 13 took effect in January 2022. This was 38% lower than January 2021 and 59% lower than January 2020.
- There were 71 administrations, which was three percent lower than January 2021 and 58% lower than January 2020.
- 575 people were made bankrupt in January 2022. Bankruptcies were 32% lower than in January 2021 and 63% lower than in January 2020.
- Individual Voluntary Arrangements ( IVA’s ) – 6,281 IVA’s were registered per month on average in the quarter ending January 2022, 10% lower than January 2021 but 5% higher than January 2020.
- The total number of debt relief orders was 59% higher than in January 2021, but 15% lower than in January 2020.
If the number of business failures start to rise, this inevitably has a knock-on effect for everyone who traded with each insolvent business. We are here to help. If you are either a creditor or a credit manager who has recently received notification of any insolvency process for one of your customers and are in need of our creditor services support and guidance please contact Sue Wood at Ward Hadaway for more information.
Please note that this briefing is designed to be informative, not advisory and represents our understanding of English law and practice as at the date indicated. We would always recommend that you should seek specific guidance on any particular legal issue.
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