Company insolvencies in England and Wales rose to their highest since 2012 in the first three months of this year following the end of emergency COVID support measures, while individual insolvencies were the highest since 2018.
“It’s clear we’re witnessing a catch-up effect,” said Jeremy Whiteson, an insolvency partner at law firm Fladgate. ‘Voluntary’ liquidations – where creditors and companies reach a deal outside court – hit the highest since records began in 1960 but compulsory liquidations stayed below pre-pandemic levels.
Part of the increase reflected a June 2021 change to one form of bankruptcy protection, debt relief orders, which can now be used to write off personal debts of up to 30,000 pounds, up from 20,000 pounds before, statisticians said.