UK individual insolvency statistics - Q2 2023

The April to June 2023 (Q2) 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 – Q2 2023

In Q2 2023, there were a total of 26,390 individual insolvencies, including:

17,458 individual voluntary arrangements (IVAs)
7,106 debt relief orders (DROs)
1,826 bankruptcies

Total individual insolvencies in Q2 2023 decreased by 8% from Q1 2023 and by 11% when compared to Q2 2022.

IVAs

After seasonal adjustment, the number of IVAs registered in Q2 2023 decreased by 12% from the previous quarter and were 22% lower than in Q2 2022. The number of IVAs in Q2 2023 was the lowest since Q3 2020.

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.

DROs

The number of DROs in Q2 2023 increased by 1% from the previous quarter and were also 23% higher when compared to the same quarter last year.

Bankruptcies

Bankruptcies in Q2 2023 consisted of:

1,471 debtors’ applications
375 creditors’ petitions

Bankruptcy numbers in the first half of 2023 increased from the 40-year low in 2022. However, bankruptcies resulting from both debtors’ applications and creditors’ petitions remained at less than half of pre-2020 levels.

Breathing Space registrations

There were 21,232 registered Breathing Spaces in Q2 2023. These comprised of:

20,919 standard Breathing Space registrations
313 mental health Breathing Space registrations

Breathing Space registrations were 26% higher in Q2 2023 than in Q2 2022.

Individual insolvency rate statistics for England and Wales – Q2 2023

In the four quarters ending Q2 2023:

1 in 422 individuals became insolvent
the individual insolvency rate was 23.7 per 10,000 adults in England and Wales

In the four quarters ending Q2 2023:

the IVA rate decreased by 1.1 in comparison to the 12 months ending Q1 2023, but increased by 1.3 from the 12 months to Q2 2022
the rate of bankruptcy was the similar to both the 12 months to Q1 2023 and the 12 months ending Q2 2022
the rate of DROs rose by 0.3 compared to the rate in the 12 months ending Q1 2023, and by 0.4 from the 12 months ending Q2 2022

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 2022, there were:

365 bankruptcies (seasonally adjusted) where the individual was self-employed, an increase of 20% on Q4 2022 and 22% higher than the same period last year
1,400 bankruptcies among other individuals in Q2 2023, an increase of 8% compared with the previous quarter and 1% higher than the same quarter of the previous year

Both bankruptcies amongst the self-employed and other individuals remained historically low in Q2 2023.

Individual insolvency statistics for Scotland – Q2 2023

The Accountant in Bankruptcy, Scotland’s Insolvency Service, administers individual insolvency in Scotland. They reported that there were 2,098 individual insolvencies in Scotland in Q2 2023, 3% higher than the same quarter of 2022.

Of the total individual insolvencies in Scotland in Q2 2023, there were:

1,409 protected trust deeds
689 sequestrations (of which 384 went into bankruptcy via the minimal asset process route)

Individual insolvency statistics for Northern Ireland – Q2 2023

In Northern Ireland in Q2 2023, there were 458 individual insolvencies. Of the total individual insolvencies, there were:

349 IVAs
47 DROs
62 bankruptcies

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.

Enquire now

Next insolvency statistics release

Figures for Q3 2023 will be released on 31 October 2023.

You can see all personal insolvency notices in The Gazette.

Find out more

Individual Insolvency Statistics, April to June 2023 (GOV.UK)

The Insolvency Service (GOV.UK)

Accountant in Bankruptcy (AiB)

Image: Getty Images

Publication date: 1 August 2023