Huge rise in company insolvencies in November

According to new figures from the Insolvency Service, the number of registered company insolvencies in November 2022 rose by 21% year on year and by 35% compared with November 2019.

There were 2,029 registered company insolvencies this November, of which 290 were compulsory liquidations, more than 5 times as many as in November 2021 and an increase of 7% on the pre-pandemic figure in November 2019.

The Insolvency Service said that November’s increase in compulsory liquidations was partly driven by an increase in winding-up petitions presented by H M Revenue and Customs (HMRC) and 95 compulsory liquidations requested by a single, unidentified bank.

In addition, there were 1,595 creditors voluntary liquidations (CVLs) over the month, a 5%increase on November 2021 and a 50% rise on the figure during the pre-pandemic comparison month.

However, the picture in November was quite different for individuals, with only 546 bankruptcies registered, a decrease of 16% on November 2021’s figures and a decrease of 60% compared with November 2019.

Meanwhile, while there was a slight year-on-year rise of 10% in Debt Relief Orders (DROs) the 2,269 registered were 4% lower than in the pre-pandemic comparison month of November 2019.

There was also an increase in Individual Voluntary Arrangements (IVAs), which increased by 11% compared with the three months to the end of November 2021, and rose by 14% from November 2019.

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

Posted in Blog.