Credit, Collections & Insolvency News
Latest figures from the Insolvency Service have indicated that personal insolvencies in England & Wales increased by 0.3% to 8,477 in January 2022 compared to 8,451 in December 2021, and were 1.8% higher than January 2021’s figure of 8,331.
There were 1,873 DROs and 575 bankruptcies. The number of DROs in January 2022 was 59% higher than in January 2021 but 15% lower than in January 2020.
The bankruptcies were made up of 507 debtor applications and 68 creditor petitions. Bankruptcies were 32% lower than in January 2021. Debtor applications were 32% lower and creditor petitions were 31% lower than in January 2021. Compared to January 2020, total bankruptcies were 63% lower; debtor applications were 61% lower and creditor petitions were 72% lower.
There were, on average, 6,281 IVAs registered per month in the three-month period ending January 2022, 10% lower than for the three-month period ending January 2021 but 5% higher than the three-months ending January 2020.
In January 2022 there were 5,279 breathing space registrations. This was made up of 5,207 (98.6%) standard breathing space registrations and 72 (1.4%) mental health breathing space registrations.
Commenting on the figures Christina Fitzgerald, Vice President of insolvency and restructuring trade body R3, said “When it comes to personal insolvencies, the slight increase we’ve seen in the figures published today is being driven by a rise in the number of people entering a bankruptcy over the last month, and suggests that more people are unable to pay their debts and are turning to this process to return to a more even financial keel.”
“The figures reflect the ongoing toll the pandemic is taking on personal finances in England and Wales. People are worried about how rising costs across the board will affect them, particularly energy prices, so it’s no wonder that people are worrying more about money.”
