UK individual insolvency statistics - Q1 2022

The January to March 2022 (Q1) individual insolvency stats for England and Wales have been published by The Insolvency Service, together with related figures for Scotland and Northern Ireland.

Individual insolvency statistics for England and Wales – Q1 2022

In Q1 2022, there were a total of 32,305 individual insolvencies, including:

23,997 individual voluntary arrangements (IVAs)
6,629 debt relief orders (DROs)
1,679 bankruptcies

Total individual insolvencies in Q1 2022 increased by 17 per cent from Q4 2021 and by 14 per cent when compared to Q1 2021. This was driven primarily by the number of IVAs registered which increased by 20 per cent when compared to Q4 and by 12 per cent when compared to Q1 2021.

However, The Insolvency Service urge caution when interpreting IVA numbers as they are counted once they are registered with the Insolvency Service by licensed insolvency practitioners and there can be a time lag between the date on which the IVA is accepted and the date of registration.

Bankruptcies in Q1 2022 consisted of:

1,427 debtors’ applications
251 creditors’ petitions

The numbers of debtors’ applications and creditors’ petitions were both amongst the lowest seen since 1998 when data on petition type started to be captured.

The number of DROs in Q1 2022 increased by 13 per cent from the previous quarter and by 59 per cent when compared to the same quarter last year.

Breathing Space Registrations

Between 4 May (when the scheme was launched) and 31 March 2021 there were 58,463 breathing space registrations. These comprised of:

57,555 standard breathing space registrations
908 mental health crisis breathing space registrations (for those receiving mental health crisis treatment)

Individual insolvency rate statistics for England and Wales – Q1 2022

In the 12 months ending Q1 2022:

1 in 416 individuals became insolvent
the individual insolvency rate was 24.1 per 10,000 adults in England and Wales
the individual insolvency rate was higher when compared to the 12 months ending Q4 2021 and Q1 2022

Unlike the absolute number of individual insolvencies over a period, the individual insolvency rate indicates the probability of a person entering insolvency in the previous four quarters. In general, periods of economic growth result in individual insolvency rates decreasing.

Bankruptcies by self-employment status

Bankruptcies by self-employment status are presented by The Insolvency Service with a one quarter lag. This is because it can take several weeks for trading status to be recorded following the date of the bankruptcy order.

In Q4 2021, there were:

331 bankruptcies (seasonally adjusted) where the individual was self-employed, an increase of 5% on Q3 2021 but 37% lower than the same period last year
1,484 bankruptcies among other individuals in Q4 2021, a decrease of 10% compared with the previous quarter and 41% lower than the same quarter of the previous year

Both bankruptcies amongst the self-employed and other individuals remained historically low in Q1 2022.

Individual insolvency statistics for Scotland – Q1 2022

The Accountant in Bankruptcy, Scotland’s Insolvency Service, administers individual insolvency in Scotland. They reported that there were 1,894 individual insolvencies in Scotland in Q1 2022, which was 13 per cent higher than during the same quarter of 2021.

Of the total individual insolvencies in Scotland in Q1 2022, there were:

551 sequestrations (of which 368 went into bankruptcy via the minimal asset process route)
1,343 protected trust deeds

Individual insolvency statistics for Northern Ireland – Q1 2022

In Northern Ireland in Q1 2022, there were 434 individual insolvencies. Of the total individual insolvencies, there were:

333 IVAs
45 bankruptcies
56 DROs

Please note, individual insolvency in Northern Ireland is governed by separate, but broadly similar, legislation to England and Wales, and so figures are presented separately.

Where can I see insolvency notices in The Gazette?

The Gazette is the primary source of both corporate insolvency and personal insolvency information in the UK and publishes this information in the form of insolvency notices, allowing transparency for the public, the credit industry and concerned individuals to quantify risk and inform creditors. You can view all corporate and personal insolvency notices on The Gazette website.

The Gazette also provides a data service which gives access to official intelligence on all UK businesses, corporate and personal insolvencies. Benefits of The Gazette’s data service include:

Bespoke reports - tailored around your specific business
Geo-targeted editions - available for specific geographical targeting (National, London, Belfast, Edinburgh)
Custom filters - specific custom attributes (company number, notice type, key terms)
Data at regular intervals - delivered at a rate to match your business needs (daily, weekly, monthly)

For more information on The Gazette’s data service, contact the team on 01603 985949 or email data@thegazette.co.uk.

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