Insolvency Figures Now Released for England & Wales - June 2024
INSOLVENCY FIGURES UPDATE – JUNE 2024 FIGURES NOW RELEASED
In a week that sees the US economy teetering on Recession, it is interesting to see how our UK economy is performing for business and individual financial stability.
The Insolvency Service has released the most recent figures for insolvency actions in England & Wales showing an increase in company insolvency actions and a fall in personal insolvencies (apart from Debt Relief Orders [DROs] which were up).
Judith Owen, Head of Lawson West Solicitor's Insolvency, Restructuring and Bankruptcy services adds:
"Company insolvencies have been increasing, though business-saving CVAs are proving more popular than before. In the 12 months to 30 June 2024, 57% of individual insolvencies were IVAs, 35% were DROs, and 7% were bankruptcies, indicating a long-term trend towards a decrease in the proportion of individual insolvencies that are bankruptcies. There were significantly more DRO numbers over the year (79%) as figures released in April 2024 coincided with the removal of the £90 administration fee to obtain a DRO from 6 April 2024."
1. Company Insolvency:
The most recent June 2024 figures for company insolvency in England & Wales have been released. Up 17% compared to last year for businesses but with an increased trend towards more Company Voluntary Arrangements (CVAs) where creditors are willing to support rescue and turnaround proposals. The figures released are higher than those reported following the COVID-19 Pandemic.
Company insolvencies in June 2024 consisted of 302 compulsory liquidations, 1,866 creditors’ voluntary liquidations (CVLs), 170 administrations and 23 company voluntary arrangements (CVAs). All types of company insolvency were higher than in both June 2023 and May 2024.
2. Personal Insolvency:
June 2024 figures for England & Wales were a total of 10,395 individual insolvencies (up 11% from May 2024), broken down as follows:
5361 – IVA’s : (a decrease on last month’s figures)
4383 – Debt Relief Orders (an increase on last month’s figures)
651 – Bankruptcies (a decrease on the previous month).
| 2024 | Compared to last month (May 2024) | 2023 | % increase/decrease from a year ago | |
|
|
|
2,040 |
2,016 |
17% higher |
|
PERSONAL INSOLVENCY: |
Total: 10,395 |
33% higher |
||
|
- IVAs |
5,361 |
|
4,712 |
14% increase |
|
- Debt Relief Orders |
4,383 |
|
2,453 |
79% increase |
|
- Bankruptcies |
651 |
|
654 |
< 1% down |
up 16%
downAccording to The Insolvency Service:
-
After seasonal adjustment, 10,395 individuals entered insolvency in England & Wales in June 2024. This was 11% higher than in May 2024 and 33% higher than in June 2023.
-
The individual insolvencies consisted of 651 bankruptcies, 4,383 debt relief orders (DROs) and 5,361 individual voluntary arrangements (IVAs). The number of DROs in June 2024 increased compared to May 2024, which had already set a record high in the monthly time series going back to their introduction in 2009. The higher DRO numbers since April 2024 coincided with the removal of the £90 administration fee to obtain a DRO from 6 April 2024. The number of IVAs registered in June was similar to the numbers seen over the past 12 months. Bankruptcy numbers remained at about half of pre-2020 levels, but similar levels to those seen in the last 12 months.
-
In the 12 months ending 30 June 2024, one in 457 adults in England & Wales entered insolvency (a rate of 21.9 per 10,000 adults). This is lower than the rate of 23.4 per 10,000 adults (1 in 427) who entered insolvency in the 12 months ending 30 June 2023.
