In England and Wales in January 2023, there were 1,671 registered company insolvencies, which were further broken down as follows:
Of the 1,671 registered company insolvencies in January 2023:
In January 2023, there were 189 compulsory liquidations, 52% more than in January 2022 but 36% less than in January 2020. The number of compulsory liquidations has risen from historical lows witnessed during the coronavirus (COVID-19) epidemic, partly due to increased winding-up petitions filed by HMRC.
There were 1,382 Creditors' Voluntary Liquidations (CVLs) in January 2023, 2% more than in January 2022 and 37% more than in January 2020. The number of administrations and Company Voluntary Arrangements (CVAs) was lower than before the epidemic but increased from January 2022 to January 2023.
Figure 1: The number of registered business insolvencies increased in January 2023 compared to the same month the previous year, owing to an increase in CVLs and compulsory liquidations. England and Wales, January 2019 to January 2023, not seasonally adjusted.
For individuals, 612 bankruptcies were registered, 5% higher than in January 2022 but 60% lower than in January 2020.
There were 1,741 Debt Relief Orders (DROs) in January 2023, 7% lower than January 2022 and 21% lower than the pre-pandemic comparison month (January 2020).
There were, on average, 6,328 Individual Voluntary Arrangements (IVAs) registered per month in the three months ending January 2023, which is 1% higher than the three months ending January 2022, and 6% higher than the three months ending January 2020.
Bankruptcies were 5% higher than in January 2022. Debtor applications were 2% higher, and creditor petitions were 21% higher than in January 2022.
Total bankruptcies were 60% fewer in January 2020; debtor applications were 60% lower, while creditor petitions were 61% lower.
Figure 2: DRO numbers increased following a change in eligibility criteria in June 2021 but have remained stable at slightly below pre-pandemic levels. Bankruptcies have remained lower than both pre-pandemic and 2020 levels. IVA numbers were marginally higher in 2022 than in previous years.
England and Wales, January 2019 to January 2023, not seasonally adjusted.
Source: Insolvency Service
Dan Hancocks, CEO of CoCredo, says: “The IMF recently commented that the UK would be the "worst performing large economy in 2023," with increased company failures for some time. "It's vital that businesses respond quickly and seek help if they are struggling or believe cashflow predictions may be reduced further in the coming months."
“The sooner they respond, the more options they will have to safeguard the company's long-term viability."
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