December 2022 Round-Up: The UK’s latest insolvency and bankruptcy statistics

This month we cover the insolvency stats for November 2022 and we look at three insolvency news stories from December. Including:

  • A charity director who took £50,000 BBL has been disqualified for 7 years
  • A carwash director banned for 10 years after claiming the full COVID loan
  • 10-year ban for clothing wholesaler after claiming £50,000 BBL

Read last month’s round-up: Bankruptcy and Insolvency News November 2022

car wash

The director of The Leanne Baker Trust disqualified for 7 years

Darren Baker, a Coventry-based director of The Leanne Baker Trust, took out £45,000 in October 2020, then a top-up loan of £5,000 in March 2021.

It may not be common knowledge, but both charities and businesses could claim on the Bounce Back Loan scheme. Mr Baker took full advantage of the scheme with no overheads or employees, yet still fell into liquidation in September 2021.

The liquidator of The Leanne Baker Trust requested an investigation by The Insolvency Service after noticing misuse of the BBL.

It was found that Mr Baker had reported a turnover of £200,000 when in fact in 2019 the turnover was £26,029. In this case, The Leanne Baker Trust would not have been eligible for the scheme and Mr Baker used the loan to pay off personal legal fees and for his own personal use. 

The full amount of the loan has been recovered, but from the 15th of December 2022, Mr Baker will be disqualified from directorship for 7 years.

Read more: Director abuses 4 BBLs worth £200,000

Cashwash director disqualified for 10 years after BBL abuse

Vasile Matcas from Haverhill in Suffolk has been banned from directorship of any company over Bounce Back Loan abuse. 

Mr Matcas established Matcas Ltd in 2016 as a construction and carwash company, however, when the pandemic hit he adjusted the company to be a carwash only. 

In order to support the change, in June 2020, Mr Matcas applied for a BBL claiming his turnover was £280,000 in 2019. The application was successful and Matcas Ltd received the full loan amount of £50,000.

The Pavilions Car Wash, established with the maximum loan amount, had to close its doors after owing more than £50,400 and entering into liquidation this July 2021. It was set up in Waltham Cross in Hertfordshire however, the failure of this venture has resulted in an investigation by the Insolvency Service. 

Investigators uncovered the truth behind Matcas Ltd’s financial situation in 2019 – their true turnover was a fraction of what they claimed to authorities. Instead of receiving just £12,300 from the Bounce Back Loan scheme, as entitled by their legitimate records, they exaggerated figures and received more than 5 times this amount.

Now, Vasile Matcas is banned from the directorship of any company for 10 years, starting from the 14th of November 2022.

10 years of bankruptcy restrictions for West London clothes wholesaler

Muhammad Arif, a 57-year-old from Uxbridge claimed £50,000 for his company Ayesha Boutique through the Bounce Back Loan scheme he was not entitled to. 

The fraudulent act caused him 10 years of bankruptcy restrictions despite having run his own wholesale clothing business for over 8 years until December 2021. 

In June 2020 he applied for the loan but gave false information about his turnover amounting to nearly £219,000 in profits during that year. Then in December 2021, Mr Arif filed for bankruptcy, in which he owed £56,200 which led to an investigation by The Insolvency Service. It was discovered at this time that his 2019 turnover was £21,604, so the company was ineligible for the BBL scheme.

The loan was determined to not have been used for the benefit of Ayesha Boutique. Mr Arif claimed that nearly two-thirds of his loan was spent on settling supplier debts – £19,000 went towards gold purchases and £8,900 in cash withdrawals. Additionally, £15,500 had gone to family members to repay personal debts.

Muhammad Arif will commence his 10 years of bankruptcy restrictions on the 11th of November 2022.

Read more: Financial Consultant Disqualified for Abusing BBLs

England and Wales Monthly Insolvency Statistics

Company Insolvencies during November 2022

  • There were 2,029 company insolvencies in November 2022, 21% higher than the same month in 2021 (1,676)
    • 290 compulsory liquidations.
    • This is five times higher than in 2021, but only 7% higher than in 2019 before the pandemic.
    • 1,595 CVLs, 50% higher than in November 2019.

Individual Insolvencies during November 2022

  • 2,269 DROs were registered, and 546 bankruptcies in November 2022.
  • On average, there were 7,801 IVAs registered in the 3-month period leading up to November 2022. This is 11% higher than the previous year.
  • A 40% increase in Breathing Space registrations occurred in November 2022 (6,796) compared to November 2021.

Asset Solutions can help you annul your bankruptcy or help with your personal insolvency if you have a problem with your financial situation. 

We have years of experience helping people in similar situations and treat every enquiry as unique. Our financial advisors and solicitors are completely independent of us so we can get exactly the right help you need for your financial situation.

Contact us today at 0800 689 3861 if you believe you are heading into bankruptcy and we can help!