Recent figures published by the Insolvency Service have revealed that between 1 July and 30 September 2022, there were 5,595 registered company insolvencies, a 40% on the same quarter in 2021.

The increase in insolvencies has mainly been due to a significant year-on-year increase in the number of Creditors’ Voluntary Liquidations (CVLs), which accounted for 86% of all insolvencies in Q3.

There was also an increase in the number of compulsory liquidations, which were around four times higher than they were at the same time last year.

In total, one in 213 active companies (46.9 per 10,000 active companies) entered liquidation between 1 October 2021 and 30 September 2022, an increase on the 29.3 per 10,000 active companies in the 12 months to 30 September 2021.

However, the UK is not the only country to see a rise in company insolvencies.

According to a separate report, France is forecast to suffer a 29% increase year on year, while insolvencies in Italy could increase by 36%.

Even China and the USA could see rises of 15% and 38% respectively, as a result of low growth and tighter financial conditions.

Meanwhile, the number of individual insolvencies in the UK over Q3 was down by 5% on the previous quarter, although 2% higher than in Q3 2021.

Between July and September, there were 27,927 individual insolvencies, comprised of 20,635 Individual Voluntary Agreements (IVAs), 5,579 Debt Relief Orders (DROs) and 1,713 bankruptcies.

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