The statistics by the Insolvency Service for the fourth and final quarter of 2020 have been released. The data set out relates to both company insolvencies and individual insolvencies, from October to December 2020.
Whilst Q4 2020 showed an increase from Q3 2020 in both underlying company insolvencies and individual insolvencies, the general trends showed a continuation of the effect of the government measures put in place in response to COVID-19.
Companies in Q4 of 2020
- There was an increase of 17% in registered underlying company insolvencies in Q4 2020 from Q3 2020. This was driven by a rise in creditors’ voluntary liquidations and company voluntary arrangements.
- Whilst the number of underlying company insolvencies was higher in Q4 2020 in comparison to Q3 2020, the total number of registered underlying company insolvencies in 2020 decreased to the lowest annual level since 1989.
- The company liquidation rate per 10,000 active companies fell in the 12 months ending Q4 2020 (29.2) in comparison to the 12 months ending Q4 2019 (42.1).
Individuals in Q4 of 2020
- There was an increase of 57% in individual insolvencies in Q4 2020 from Q3 2020. This was driven by a rise in individual voluntary arrangements.
- The number of bankruptcies was slightly higher in Q4 2020 than in Q3 2020, but numbers of
bankruptcies each quarter since Q2 2020 have continued to be the lowest seen since 1991.
- Whilst the number of individual insolvencies increased in Q4 2020 in comparison to Q3 2020, there were fewer total individual insolvencies in 2020 than in the previous 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 February 24, 2021