The number of individual voluntary arrangements (IVAs) – an alternative to bankruptcy – are on the rise, Insolvency Service data shows.
The Insolvency Service said the number of company and individual insolvencies remained low in November 2020, in part due to government emergency support and payment breaks during the pandemic.
However, on a rolling three-month basis, IVAs are up three per cent to 7,057 as of November 2020 compared with the same period last year.
IVAs allow individuals to agree a formal repayment proposal with creditors rather than being made bankrupt.
In contrast, there were 1,425 debt relief orders and 927 bankruptcies in November 2020 in England and Wales , down 38 per cent and 32 per cent respectively on an annual basis.
There was a total of 889 company insolvencies in England and Wales, comprised of 767 creditors’ voluntary liquidations (CVLs), 34 compulsory liquidations, 73 administrations and 15 company voluntary arrangements (CVAs).
The overall number of company insolvencies decreased by 41 per cent in November 2020, when compared to the same month last year.
This was primarily driven by an annual decrease in the numbers of CVLs and compulsory liquidations which fell by 28 per cent and 88 per cent respectively.
The number of companies entering administration in November 2020 also fell when compared with the same month last year by 51 per cent.
The number of CVAs fell by 29 per cent in November 2020 compared with the same period last year.