Insolvency Statistics Paint Ominous Picture

• Published date: 10 May 2021
• Subject Matter: Insolvency/Bankruptcy/Re-structuring, Insolvency/Bankruptcy
• Law Firm: Keebles
• Author: Mr Craig Chappell

However, thus far, the insolvencies that one would expect to see have not materialised because of the unprecedented support given by the Government. However, recent official insolvency statistics suggest ominous signs of what we might expect in the months ahead as that Government support is withdrawn.

The key statistics for Personal Insolvencies are as follows:

• These Increased by just over 60% from February to March 2021
• However, overall they were 31% lower than in March 2020
• In numbers, there were 10,941 personal insolvencies for March in total
• Included in the figures are 1,591 Debt Relief Order's
• There were also 1,028 bankruptcies

The key statistics for corporate insolvencies are:

• These Increased by 44.8% from February to March 2021
• However, overall, they were 19.7% lower than March 2020
• In total there were 992 corporate insolvencies
• 883 were Company Voluntary Liquidations
• 25 were Compulsory Liquidations
• 74 were Administrations
• 10 were Company Voluntary Arrangements

So, what do these numbers tell us? Firstly, the comparative figures for 2020 and 2021 clearly evidence that the various Government support schemes have protected thousands of businesses and millions of jobs thus far which is reflected in the 31% and 19.7% reduction in personal and...