Insolvencies to increase as pandemic restrictions ease

The number of registered company insolvencies in July 2021 was 1 094 as reported in the Insolvency Service monthly statistics for July. This was 13% higher than the number registered in the same month in the previous year (965 in July 2020) but 24% lower than the number registered two years previously (pre-pandemic; 1 442 in July 2019).

In July 2021 there were 1 007 creditors’ voluntary liquidations (CVLs) which was similar to pre-pandemic levels. The overall reduction in company insolvencies compared to July 2019 was driven mostly by the lower number of compulsory liquidations.

For individuals 620 bankruptcies were registered which was 34% lower than July 2020 and 58% lower than July 2019.

There were on average 6 841 individual voluntary arrangements (IVAs) registered a month in the three-month period ending July 2021 which is 7% lower than both...