UK Insolvency figures for October 2020
Source of figures: The Insolvency Service
UK Personal insolvencies rise by 60%
Despite everyone’s assumption that insolvency has gone through the roof. The figures published do not reflect that,
UK personal insolvencies increased 60% to 11,939 in October 2020. September reported figures reported 7,458 according to the newest Insolvency Service data.
Compared to Octobers 2019 figure. Personal insolvencies recorded an increase of just under 200 in October 2020.
Corporate figures remain stagnant surprisingly during the Coronavirus COVID19 Pandemic.
Further figures show that in October 2020:
- 1,572 debt relief orders (DROs) and
- 1,048 bankruptcies which compared to September 2020 demonstrate a small rise. However, when compared to October 2019, down by approx 33%.
John Waller Partner at HBG Advisory LLP, stated “The October published figures do not reflect the public opinion of insolvency in the UK during the Coronavirus. Figures suggest that individuals in the UK are growing in personal debt issues. How will looming levels of potential unemployment levels impact in 2021?
UK Business impact
The current figures demonstrate the measures taken by Rishi Sunak,
Chancellor of the Exchequer, way back at the beginning of the Pandemic together with the ongoing support, are having an impact, bolstering the UK economy. However, with interim measures preventing creditor enforcement actions against debtors, due to terminate.
The first quarter of 2021 could turn out to be challenging for UK businesses. What will be the true impact on the economy once the suspension of tax payments, rents and other creditors rear the heads for payment.
Will UK businesses be prepared?
UK Corporate insolvencies October 2020
Corporate insolvencies dropped to 856 compared to 925 in September 2020. In October 2019, 1,485 companies entered insolvency.
October published figures demonstrate:
- That 672 creditors’ voluntary liquidations (CVL) have taken place;
- 59 compulsory liquidations;
- 104 company administrations and;
- 21 company voluntary arrangements (CVA).
For further in-depth information on the above view the Insolvency Services figures for October 2020.