The Latest Insolvency Statistics Are Out

Somehow it is already the middle of March today (Friday 15 March), and the time for the latest statistics from the Insolvency Service.

We start with the number of registered company insolvencies in February 2024 being 2,102, which is 17% higher than in the same month in the previous year (1,801 in 2023) and can’t surely all be down to the extra leap-day. 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.

The 2,102 was headed as ever by 1,707 CVLs, followed by 217 Compulsory Liquidations, 166 Administrations and 12 CVAs.  All of these figures, with the exception of CVAs which remained the same, were higher than in 2023.  Administrations saw a rise of 54% compared to 35% for Compulsory Liquidations, whilst there was a 12% increase in CVLs.

For completeness, there were no Receivership appointments, Moratoriums or Restructuring Plans registered at Companies House in February 2024.

The personal statistics showed 10,136 personal insolvency cases, a jump of 23% compared to 12 months ago (8,239).  IVAs again led the way with 6,420 (a rise of 16%), although the Insolvency Service highlighted this figure included an “unusually high number of IVAs (more than 1,000)” which were approved over two months prior to being registered in February.  It is the date of registration (not approval) which counts towards the insolvency stats.  Having undertaken a quick bout of reading between the lines, the NTI newsroom have concluded that there are always late registrations of IVAs (note Rule 8.26 states this should be done as soon as reasonably practicable, and in any event within fourteen days of the Chair report being filed in court or sent to creditors) but that some firms spent too much time at the Christmas party and forgot to file their return.

Returning to the breakdown by case type, there was a leap of 44% in Debt Relief Orders to 3,007 (a number that seems set to rise further given the changes in the budget) and a 16% rise in Bankruptcies.  The 709 Bankruptcies was made up of 594 debtor applications (up 22%) and 115 creditor petitions (down 9%).

Finally, there were 8,073 Breathing Space Registrations, split into 7,964 standard Breathing Space and 109 for those eligible for a Mental Health Breathing Space.  The total for the month was an increase of 10%, driven solely by a similar rise in standard applications.