Top Service News
September Insolvency Statistics
On Friday 13th October the latest Insolvency Statistics for September 2023 were announced. Below, we shed light on how these statistics may impact you and your business.
Year on Year Comparison
Company Insolvency has risen by 17% in September 2023 when compared to September 2022. The total number of company insolvencies in September was 1,967, let’s break that down.
For the month of September there were 1,576 Company Voluntary Liquidations, 255 Compulsory Liquidations, 11 Company Voluntary Arrangements and 125 Administrations.
Administration has increased by 47% when compared to September 2022, followed by an 19% increase in Compulsory Liquidations, 14% increase in Creditors Voluntary Liquidations (CVL’s) and lastly there was the same number of Company Voluntary Arrangements (CVA’s) as the same month in the previous year.
A Month on Month View
Compared to August 2023, insolvency rates for the month of September have decreased. In August 2023, 2,308 registered company insolvencies were reported 732 more than September 2023.
A decrease in CVL’s by 304 and Administrations by 70 can be seen when comparing the September 2023 statistics to the August 2023 statistics. The only increase in September 2023 comes from Compulsory Liquidations where we can see an increase of 34 and this may partly be due to the rising number of Winding-Up petitions that are presented by HMRC.
The decrease of Insolvency figures in September 2023 provide a positive outlook however there has been a net increase of 242 Insolvency cases for this last quarter July to September 2023 and therefore insolvency levels are still increasing despite the decrease of insolvency cases in September.
Year on Year Comparison
In September 2023, there were 7,271 individual insolvencies, a decrease of 27% when compared to September 2022.
The total number consists of 671 Bankruptcies, 2,913 Debt Relief Orders and 3,687 Individual Voluntary Arrangements (IVA’s).
The majority of the decrease in individual insolvency cases for September 2023, comes from a large decline of Individual Voluntary Arrangements, in September 2023, there was less than half of the amount of Individual Voluntary Arrangements in comparison to September 2022.
Month on Month View
Small increases in Bankruptcies and Debt Relief Orders can be seen when comparing September 2023 to August 2023. However Individual Voluntary Arrangements have continued to decrease by 1487.
Over the previous quarter July – September 2023, there has been an overall decrease of 1020 in the number of cases of individual insolvency and this is due to the decline in Individual Voluntary Arrangements which have decreased by 1294 cases over the quarter.
Company insolvency continues to climb with Company Voluntary Liquidations and Compulsory Liquidations increasing mostly overall.
The decrease in individual insolvencies is generally positive, indicating a potential improvement in the financial well-being of individuals. However, the decline in Individual Voluntary Arrangements suggests fewer people are opting for this debt resolution method, which might have implications for creditors in recovering overdue funds.
In conclusion, now is the time to closely monitor clients and key supplier accounts, review your credit management tools and processes and consider implementing if you do not already, the use of a credit reference agency.