Credit Strategy – Turnaround, Restructuring and Insolvency News (IRR)

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The figure stood at 1,446 in September 2021, higher than the number of 928 recorded in September 2020, but lower by 4% than the 1,510 recorded in September 2019.

Voluntary Creditors’ Liquidation (CVLs) reported in September 2021 were 1,328 in England and Wales, the highest level in the series since January 2019. Driven by this high CVL figure, the number of insolvencies The registered businesses were similar to those before the pandemic. levels – although mandatory liquidations remained lower.

At the same time, 12 voluntary company agreements (CVA) were registered in September 2021, i.e. 61% less than in September 2020 and 45% less than in September 2019.

Commenting on the results, Nicky Fisher, assistant vice president of insolvency and restructuring at the R3 business body, said: to keep businesses afloat and suggests that there may be a strewn road to pitfalls for the business world now that it is over.

“The monthly increase in corporate bankruptcies was driven by an increase in CVLs, which increased for the third consecutive month. This suggests that directors are choosing to shut down their businesses after judging their financial survival unlikely after 18 months of trading during a pandemic.

“Despite the fact that businesses have benefited from two months of unrestricted trading and the summer’s economic upturn, conditions have still not returned to what they were before the pandemic. Consumers are now increasingly cautious about the state of the economy, their personal finances and the rising cost of living, and are more wary of spending their money.

On the personal side, 614 bankruptcies were registered in September – 42% less than in September 2020 and 55% less than in September 2019. The number of debt relief orders (DRO) registered in September 2021 was at its highest level since the start of the pandemic, with 2,150 DROs recorded.

This stems from changes to the eligibility criteria on June 29 which included an increase in the level of debt at which people could apply for a DRO from £ 20,000 to £ 30,000. Thus, the number of registered scrutineers was 41% higher than in September 2020, but 12% lower than in September 2019.

Fisher added: “This suggests that more people are in debt and are taking action to address the issues they are facing with their finances, but also that the situation is still difficult for people in England and Wales.

“Although September saw an increase in job vacancies and the number of employed people returned to pre-pandemic levels, a high percentage of employed people are in temporary positions, and more than a million people were still on leave when the program ended at the end. of the month.”

The Insolvency Department’s figures also highlight the number of breathing space registrations that took place between its launch date of May 4, 2021 and September 30, 2021. Overall, there have been 27 246 breathing space recordings, consisting of 26,896 standard recordings and 350 mental health recordings.

As of September 2021, there were 5,098 breathing space records, with 5,014 being standard records and 84 being mental health records.

Commenting on the program, Fisher said, “Government support has been a lifeline for many, and initiatives like the Respite Program have proven to be welcome support for those in financial distress. However, this support could not help everyone, and many people had to use their savings to cover expenses during the pandemic. ”

In Scotland, 70 business bankruptcies were registered in September 2021, 63% more than in September 2020 but 8% less than in September 2019. These figures included eight court-ordered liquidations, 52 CVLs and ten administrations, without HOW ARE YOU. or appointments in receivership.

Traditionally, the volume of business bankruptcies in Scotland has been the result of forced liquidations. However, since April 2020, there have been more than twice as many CVLs as liquidations.

In Northern Ireland, 11 business bankruptcies were registered, which is 10% more than in September 2020 but 69% less than in September 2019. These were one administration, nine CVLs and a CVA, without judicial liquidation or sequestration.


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