The latest statistics have been released by the Insolvency Service. The data set out relates to both company insolvencies and individual insolvencies, from July to September 2020.
The trends highlighted continue to reflect the effect of the government measures put in place in response to COVID-19. The provisions currently in place include restrictions on statutory demands and winding up petitions, in addition to the continued government-backed financial support, for both companies and individuals.
Companies in Q3 of 2020
- Overall numbers of company insolvencies in England and Wales fell in Q3 2020 when compared with Q2 2020, and when compared with the same quarter in 2019.
- The company liquidation rate fell in the 12 months ending Q3 2020 to 32.2 per 10,000 active companies in England and Wales, from 37.0 per 10,000 active companies in the 12 months ending Q2 2020.
Individuals in Q3 of 2020
- The total number of individual insolvencies in England and Wales decreased by 40% in Q3 of 2020 in comparison to Q2 2020 and by 37% when compared with the same quarter in the previous year (Q3 of 2019).
- The rate of individual insolvency for the 12 months ending Q3 2020 fell to 23.2 per 10,000 adults in comparison to the 12 months ending Q2 2020 and the 12 months ending Q3 2019 (rate of 25.9 and 27.4 per 10,000 adults respectively).
- The numbers of debt relief orders (DROs) decreased in comparison to both the latest quarter and compared to the same period as last year (7% and 33% respectively).
- Bankruptcies increased in the last quarter by 10% but remained 33% lower than in the same period last year.
For more information or advice on this or any other insolvency-related issue, you can contact Head of Insolvency and qualified Insolvency Practitioner, Annabel Whittaker on 0115 9 100 256 or send her an email.
Posted on December 7, 2020