The January to March 2021 (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 2021

In Q1 2021, there were a total of 29,140 individual insolvencies, including:

• 22,354 individual voluntary arrangements (IVAs)
• 4,143 debt relief orders (DROs)
• 2,643 bankruptcies

Total individual insolvencies in Q1 2021 decreased by 5 per cent from Q4 2020 but were 1 per cent higher when compared to Q1 2020. The increase in individual insolvencies when compared to the same period last year was driven by a 26 per cent increase in IVAs.

However, the Insolvency Service urge caution when interpreting the numbers, as IVAs are counted within these statistics once they are registered with the Insolvency Service and are reported by quarter of registration. There can be a time lag between the date on which the IVA is accepted (known as the date of creditor agreement) and date of registration by licensed insolvency practitioners working for firms that specialise in this area. Changes in volumes of registered IVAs may be due in part due to changes in how these firms operate.

The number of bankruptcies in Q1 2021 decreased by 12 per cent from the previous quarter and were also 37 per cent lower than during the same quarter last year. The number of bankruptcies was the second-lowest since Q1 1990, with only Q2 2020, during the first UK lockdown in response to the COVID-19 pandemic, being lower.

Bankruptcies in Q1 2021 consisted of:

• 2,330 debtors’ applications
• 278 creditors’ petitions

Individual insolvency rate statistics for England and Wales – Q1 2021

In the 12 months ending Q1 2021:

• 1 in 425 individuals became insolvent
• the individual insolvency rate was 23.5 per 10,000 adults in England and Wales
• the individual insolvency rate was lower when compared to the 12 months ending Q4 2020 and Q1 2020

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.

Individual insolvency statistics for Scotland – Q1 2021

The Accountant in Bankruptcy, Scotland’s Insolvency Service, administers individual insolvency in Scotland.

They reported that in Q1 2021, there were 1,675 individual insolvencies individual insolvencies in Scotland, a decrease of 47 per cent when compared to the same quarter of the previous year. Of the total individual insolvencies in Scotland in Q1 2021, there were:

• 561 sequestrations (of which 389 went into sequestration via the minimal asset process route)
• 1,114 protected trust deeds

Individual insolvency statistics for Northern Ireland – Q1 2021

In Northern Ireland in Q1 2021, there were 424 individual insolvencies, a 32 per cent decrease when compared with the same quarter of the previous year. Of the total individual insolvencies, there were:

• 321 IVAs
• 29 bankruptcies
• 74 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.

Next insolvency statistics release

Figures for Q2 2021 will be released on 30 July 2021.

You can see all personal insolvency notices in The Gazette.

See also

Company insolvency statistics – Q1 2021

What you need to know about Corporate Insolvency and Governance Bill

Find out more

Individual Insolvency Statistics, January to March 2021 (GOV.UK)

The Insolvency Service (GOV.UK)

Accountant in Bankruptcy (AiB)

Image: Getty Images

Publication date: 5 May 2021