Insolvencies rose to pre-pandemic levels in January

The number of companies entering into insolvency rose in January to reach 1,560, over double the 758 seen in the same month last year.

According to the Insolvency Service, the number of new insolvencies in January was largely in line with the 1,508 seen in January 2020 prior to the pandemic.

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In January 2022, the number of creditors’ voluntary liquidations (CVLs) and bankruptcies increased from the same month in 2021 and 2020.

Last month, there were 1,358 CVLs, more than double the number in January 2021, and 34 per cent higher than in January 2020. 575 bankruptcies were registered, down by 32 per cent year-on-year, and 63 per cent lower than the same month two years ago.

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There were 1,873 debt relief orders (DROs) in January 2022, up by 59 per cent year-on-year.

The number of DROs increased between July 2021 and January 2022 after the government increased the level of debt at which people can apply for a DRO from £20,000 to £30,000 on 29 June.

On average, there were 6,281 individual voluntary arrangements registered per month in the three-month period ending January 2022, which is 10 per cent lower than the three-month period ending January 2021, but five per cent higher than the same period the previous year.

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