The latest statistics have been released by the Insolvency Service. The data relates to both company insolvencies and individual insolvencies, from January to March 2021.
Despite the further lockdown at the beginning of 2021 causing possible potential setbacks for both individuals and companies, the latest figures for Q1 of 2021 show a decrease of company insolvencies and individual insolvencies.
In line with the trends shown in Q4 of 2020, the continued drop highlights the impact of the government measures put in place in response to COVID-19 to support companies and individuals.
Companies in Q1 of 2021
- One in 396 active companies went into liquidation between 1 April 2020 and 31 March 2021. A decrease from the year ending 31 March 2020. This was driven by a drop in all company insolvency procedures.
- There were 2384 registered company insolvencies in Q1 of 2021. 22% lower than the number of registered company insolvencies in Q4 of 2020.
- Creditors voluntary liquidations were the most common insolvency procedure.
Individuals in Q1 of 2021
- There was a 5% decrease in the total number of individual insolvencies in Q1 of 2021 in comparison to Q4 of 2020, with Individual Voluntary Arrangements (“IVAs”) being the most common insolvency procedure (77% of cases).
- The number of IVAs in Q1 2021 decreased by 5% in comparison to Q4 of 2020.
- Bankruptcies in Q1 2021 decreased by 12% in comparison to Q4 2020 and were 39% lower than in the same quarter last year. The number of bankruptcies was the second-lowest since Q1 of 1990, with only Q2 of 2020 being lower; this being in response to the first UK lockdown in 2020.
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 May 14, 2021