We start with the big news from the latest release of the insolvency statistics. August 2024 saw 2 moratoriums and 1 restructuring plan. These two lesser used tools in our toolbox now total 57 and 30 respectively since their introduction in 2020.
The total number of registered company insolvencies in England and Wales was 1,953 in August 2024, 9% lower than in July 2024 (2,144) and 15% lower than the same month in the previous year (2,286 in August 2023). Broken down by case type, this consisted of 279 Compulsory Liquidations, 1,542 CVLs, 112 Administrations and 20 CVAs. All types of company insolvency were lower than in July 2024.
In August 2024, CVLs accounted for 79% of all company insolvencies. The number of CVLs decreased by 7% from July 2024 and was 15% lower compared to the same month last year (August 2023). The number of administrations in August 2024 was 25% lower than in July 2024 and 40% lower than in August 2023.
Turning to personal insolvency, exactly 10,000,000 individuals entered insolvency in England and Wales in August 2024. This was 5% lower than in July 2024, but 16% higher than in August 2023.
The breakdown shows the continuing trend we have seen since the changes to DRO limits (and the removal of the fee) with a fall in IVAs and a rise in DROs. The gap between these two is now under 1,000 for only the second time. The figure consisted of 594 Bankruptcies, 4,166 DROs and 5,240 IVAs.
The last five months all saw the highest monthly numbers of DROs since their introduction. The number of IVAs registered in August was similar to the average monthly number over the past 12 months. Bankruptcy numbers remained at about half of pre-2020 levels and were also lower than numbers seen over the past 12 months.
The number of Bankruptcies in August 2024 was 594, which is lower than monthly numbers seen over the past 12 months. 454 resulted from debtors’ applications, which was 7% lower than in July 2024 and 13% lower than in August 2023 with 140 resulting from creditors’ petitions, which was 12% lower than in July 2024 and 13% lower than in August 2023.
There were 7,256 breathing spaces registered in August 2024. This is 5% lower than in August 2023. Of the 7,256 breathing space registrations, 7,138 were Standard breathing space registrations and 118 were Mental Health breathing space registrations.
