It's Beginning To Look A Lot Like... Insolvency

It’s that time of the month again, and whilst you’re busy getting those final bits ready for Christmas, the Insolvency Service have been busy compiling the November 2024 insolvency statistics.

Corporate Insolvency

We start with the corporate statistics. After seasonal adjustment, the number of registered company insolvencies in England and Wales was 1,966 in November 2024. This was 13% higher than October 2024 (which recorded 1,743) and 12 % lower than November 2023. The number of company insolvencies remained much higher than those seen both during the Covid-19 pandemic, and between 2014 and 2019.

During November, there were 254 Compulsory Liquidations, 1,565 CVLs, 132 Administrations, 14 CVAs, and, I hope you’re sitting down for this one, ONE RECEIVERSHIP.

All types of company insolvency (except for Receiverships) were higher than in October 2024.

One in 189 companies on the Companies House register entered insolvency between 1 December 2023 and 30 November 2024 (52.9 per 10,000 companies). This was a decrease from the 57.3 per 10,000 in the previous 12 months. Whilst the insolvency rate has increased since the lows seen in 2020 and 2021, it remains lower than the peak of 113.1 per 10,000 companies seen during the 2008-09 recession. The Insolvency Service say this is because the number of companies on the ‘effective’ Register has more than doubled since then.

CVLs
In November 2024, CVLs accounted for 80% of all company insolvencies. The number increased by 8% from October 2024, and was 15% lower compared to November 2023. In 2023, the annual number of CVLs reached its highest level since the start of records in 1960, continuing the annual increases seen since 2021.

Compulsory Liquidations
WUCs in November 2024 were 37% higher than October 2024, and 6% lower than November 2023. Expectedly, the numbers have increased since the temporary Covid provisions. In 2023, Compulsory Liquidations increased by 44% from 2022, but remained 4% lower than in 2019 (before the pandemic, remember that?!)

Administrations
The number of Administrations in November 2024 was 36% higher than in October 2024, and 12% higher than November 2023.

Administrations had previously seen an 18-year low during the pandemic, and have now returned to similar levels to 2015-2019.

CVAs
November saw a 17% increase in CVAs compared to November 2023, and 17% more than October 2024.

Poor Old Administrative Receiverships
There was one Administrative Receivership appointment in November 2024 (as mentioned above). There have only been three ARs in the last 12 months.

The Other Stuff
There were two Moratoria and one Restructuring Plan registered at Companies House in November. Fifty-nine companies have now obtained a Moratorium (between 26 June 2020 and 30 November 2024) and 35 have had a Restructuring Plan registered at Companies House.

Personal Insolvency

In Personal Insolvency, 10,012 individuals entered insolvency in England & Wales in November 2024. This was 12% higher than in October 2024, and 25% higher than November 2023.

Of the 10,012, there were 589 Bankruptcies, 3,693 Debt Relief Orders (DROs) and 5,730 Individual Voluntary Arrangements (IVAs).

Monthly DRO numbers have been at record highs since the removal of the £90 fee from 6 April 2024, and the increase in the allowable debt level since 28 June. The number of IVAs registered in November 2024 was similar to the average monthly figure seen over the past 12 months. Bankruptcy numbers remained at about half of pre-2020 levels, and were also lower than in November 2023.

There were 7,626 Breathing Space registrations in November 2024, which was 2% higher than in November 2023.

In the 12 months ending 30 November 2024, one in 422 adults in England & Wales entered insolvency, at a rate of 23.7 per 10,000 adults. This is higher than the rate of 21.8 per 10,000 (one in 459) who entered insolvency in the year to 30 November 2023.

Bankruptcies
Of the 589 Bankruptcies, 145 were creditors’ petitions, and 444 were debtors’ applications. Bankruptcy numbers have declined since 2009, and as we know, fell further during the Covid-19 pandemic. Numbers remain much lower than the long term (2014 to 2023) average of 1,129 per month.

IVAs
IVA numbers over the last 12 months have been lower than during 2022, which saw a record high. The 5,730 IVAs registered in November 2024 was 34% higher than in November 2023, and 25% higher than in October 2024.

BSMs and MHCMs
There were 7,262 Breathing Spaces registered under the Debt Respite Scheme in November 2024. Of this, 7,506 were ‘standard’ Breathing Space Moratoria, and 120 were Mental Health Crisis Moratoria. Between the start of the scheme in May 2021 and 30 November 2024, StepChange Debt Charity registered 61% of Breathing Spaces.