The Insolvency Service have released their latest monthly insolvency statistics for July 2023 this morning (Tuesday).
Corporate Insolvency
The number of registered company insolvencies in July 2023 was 1,727, 6% lower than in the same month in the previous year (1,831 in July 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 248 compulsory Liquidations in July 2023, 81% higher than in July 2022. Numbers of compulsory Liquidations have increased from historical lows seen during the pandemic, partly as a result of an increase in winding-up petitions presented by HMRC.
In July 2023 there were 1,336 Creditors’ Voluntary Liquidations (CVLs), 17% lower than in July 2022. Numbers of Administrations and Company Voluntary Arrangements (CVAs) were higher than in July 2022, with 124 being registered; a 53% increase on July 2022. There were 19 CVAs registered in July 2023, which is almost 4 times as many as July 2022.
Personal Insolvency
Bankruptcy numbers are down on pre-2020 numbers (less than half) at 620 for July 2023, which was 14% higher than in July 2022. Of these, 495 were debtor applications, and 125 creditor petitions. Debtor applications were 7% higher, and creditor petitions 49% higher than July 2022.
There were 2,667 DROs in July 2023, which was a whopping 45% higher than July 2022. Monthly DRO numbers between April and July 2023 were slightly higher than pre-2020 levels.
There were, on average, 5,659 Individual Voluntary Arrangements (IVAs) registered per month in the three-month period ending July 2023, which is 26% lower than the three-month period ending July 2022.
There were 7,794 Breathing Space registrations in July 2023, which is 28% higher than the number registered in July 2022. 7,660 were 'standard' Breathing Space registrations, which is 28% higher than in July 2022, and 134 were Mental Health Crisis Moratorium registrations, which is 14% higher than the number in July 2022.
From the start of the coronavirus (COVID-19) pandemic until mid-2021, overall numbers of company and individual insolvencies 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.
