Personal insolvencies in England and Wales increased by just over 60% in March compared to February’s figure, latest insolvency statistics show.
The total of 10,941 personal insolvencies for March included 1,591 DROs and 1,028 bankruptcies. The bankruptcies were made up of 937 debtor applications and 91 creditor petitions. The numbers of DROs and bankruptcies in March 2021 were both 31% lower than in March 2020.
There were, on average, 6,388 IVAs registered per month in the three-month period ending March 2021, 24% higher than for the three-month period ending March 2020.
Corporate insolvencies increased by 44.8% to 992 in March 2021 compared to February’s figure of 685, and were 19.7% lower than March 2020’s figure of 1,236. Overall, company insolvencies have remained low since the start of the first UK lockdown in March 2020, when compared with pre-pandemic levels.
In March 2021 there were 992 registered company insolvencies, comprising 883 CVLs, 25 compulsory liquidations, 74 administrations and 10 CVAs. There were no receivership appointments.
The overall number of registered company insolvencies in March 2021 was 20% lower than in the same month in the previous year.
Christina Fitzgerald, vice president of insolvency and restructuring trade body, R3, said: “As lockdown restrictions continue to unwind, there are reasons to be optimistic. Many businesses have adapted and reinvented themselves during the pandemic and may be in a better position for the coming months as a result.
“The government’s recent decision to extend a number of its temporary insolvency measures provides a window for anyone whose finances have been affected by the pandemic to plan for the future and explore how they can improve their situation. We urge them to take it – and to start by seeking advice about their options from a qualified source.”