Insolvency statistics across NZ in 2021 compared to 2020.
Overall Liquidations 2020 v 2021

- The monthly liquidation numbers for 2022 are following the general trends of 2020 and 2021.
- However, liquidation numbers overall for 2022 (to end April) are even lower than 2020 and 2021. These were already record low years for liquidations.
- Will we see a spike in May, as in 2020 and 2021, or will liquidation numbers continue to decline?
- A decline seems unlikely, given the current economic climate, inflation & interest rate rises. If house prices start to fall substantially, we would expect to see a rise in insolvencies.
Insolvent v Solvent Liquidations
Liquidations 2020
Liquidations 2021



- In 2021, the number of liquidations peaked in March.
- Although solvent liquidations do not appear to follow a specific trend – towards the end of 2021, after the Covid-19 lockdown from August, there is an increase in solvent liquidations

Shareholder/Court/IRD Liquidation Numbers 2020 v 2021


Shareholder (and other) liquidation numbers have declined from 2020 to 2021; however, IRD liquidation applications and IRD Court liquidations have increased significantly from 2020. This has resulted in the overall increase in Court liquidations in 2021.
What has the IRD been up to?

- The non-IRD court applications (overall) have declined since 2019.
- However, the IRD applications dropped significantly between the 2 level 4 lockdowns. This is to be expected as the IRD is more centralised and government directives and policy drive their actions i.e., stop enforcement directives.
- The common market is not directed like this and so all other non-IRD applicants were less likely to stop collections during COVID lockdowns as the graph shows.
- The rate of court liquidation applications that turn into court liquidations are as follows: Year 2020: 43.6%; Year 2021: 64.67%; Year 2022: 46.67%
IRD Court Liquidation Applications 2020 v 2021


- In 2020, 1/3 of the Court liquidation applications were made by the IRD.
- In 2021, the number of IRD Court liquidations shot up, with the IRD making up circa 60% of the 560 Court liquidation applications.
If you have any questions related to the insolvency statistics or would like to chat with our team, please get in touch with us at enquiries@waterstone.co.nz or call us on 0800 CLOSED.