Published: 22/02/2022 By Hannah McCormackIt's our first set of insolvency figures for 2022!
All the data is taken from the monthly stats created by the insolvency service.
With the Government lifting covid restrictions, the business world back on its feet, we see how the start of 2022 is shaping up, especially now the tapering off of financial aid is in place and many of the government financial support schemes have come to an end.
We previously reported that during the pandemic overall numbers of company and individual insolvencies were lower than previous years, however, things have now changed and the number of company insolvencies are 3% higher than pre-pandemic times. Within this number are the Creditors Voluntary Liquidation (CVL) numbers, which have been gradually creeping up since the end of 2021; now we are in 2022 they are at their highest, even higher than they were pre-pandemic (34% higher). The numbers for other insolvency procedures still remain lower apart from compulsory Liquidations which have doubled.
The graph below shows the data from January 2019 to January 2022 for company insolvencies in England and Wales.
There were 1,560 registered company insolvencies in January 2022 in England & Wales
- More than double the number registered in the same month in the previous year - 758 January 2021
- Similar to the number registered pre-pandemic - 1,508 in January 2020)
These figures are made up as follows:
Creditors Voluntary Liquidations = 1,358 (122% higher than in January 2021 and 34% higher than in 2020)
Compulsory liquidations = 118 (131% higher than January 2021 but 60% lower than January 2020)
Administrations = 71 (3% lower than 2021 and 58% lower than 2020)
Company Voluntary Arrangements = 13 (38% lower than 2021 and 59% lower than 2020)
Moratorium = 15 between June 2020 & January 2022
Could a Moratorium give you the necessary breathing space to save your business? Find out here.
Want to know more about each Insolvency Procedure listed above? click each link below for our insolvency advice pages:
Company Voluntary Liquidation (CVL)
Compulsory Liquidations or winding up by the court
Company Voluntary Arrangement (CVA)