Company insolvency statistics rise in July

According to the Insolvency Service, in July 2022 there were 1,827 company insolvencies in total across England and Wales.

These included 1,609 creditors’ voluntary liquidations (CVLs), 132 compulsory liquidations, 81 administrations and five company voluntary arrangements.

This meant an overall increase in company insolvencies year-on-year of almost 67% and a 27% rise since July 2019.

It should also be noted that there were three times as many compulsory liquidations in July 2022 as in July 2021, and the number of administrations was twice as high as a year ago.

The increase in corporate insolvencies has largely been driven by the rise in CVLs, up almost 60% since July 2021, which is likely to be because business owners see little evidence of improvement in the overall economy.

With inflation remaining high and the economy shrinking, the pressure on Directors to stay afloat is rising and although employment figures remain high, with the massive rise in energy prices looming, consumers are still being cautious about spending money.

However, the number of personal insolvencies decreased by 12.7%, to 9,190 in the same month compared with June 2022, although this figure was 1.1% higher than July 2021’s figure of 9,090.

For individuals, there were 531 bankruptcies registered, which was 16% lower than in July 2021 and 64% lower than July 2019.

There were 1,835 Debt Relief Orders (DROs) in July 2022, which was similar to July 2021, but 23% lower than in July 2019.

For help and advice on related matters, please contact our Insolvency Director and Appointment Taker, Richard Warwick, today.

Posted in Blog.