Insolvency by the Numbers #61: NZ Insolvency Statistics Year End 2025 and January 2026
What have the insolvency numbers done in 2025 along with January 2026, at the same time we take a look at what could be instore for the rest of the 2026 for personal and corporate insolvency.
Winding Up Applications
Surprising no one based on how the first 11 months of 2025 were tracking we finished the year with 1289 winding up applications for the year, well above any of the past 5 years and reinforcing that we are yet to see the end of the pressure businesses are facing.
The January monthly total was 115 applications, slightly down on the 2025 total of 130 application. This drop was made up entirely of a reduction in IRD winding up applications from 100 in 2025 to 81 in 2026. Theses application all had February and March hearing dates, so we are expecting to have a busy 2 months to start the year from court appointments.
2026 looks like it will exceed 2024 but may not yet reach the highs of 2025. However, it is very much still early days to predict this.
The big question will be how the November election will play out, and what effect this will have on insolvency appointments. The incumbent government has set the date late in the year to give the economy as much time as possible to have some form of recovery. But with the IRD still sitting on billions of dollars of debt to collect in they may be hard placed to not pursue businesses for what they are owed. It’s a double-edged sword, IRD takes the pressure off and business owners feel less pressure but then the government doesn’t have the recoveries to funds the traditional election year lolly scramble. Whereas if IRD keeps the pressure on business confidence remains in the tank and the recovery takes longer. Its unlikely we will be seeing any further OCR drops with the official stats showing raises in inflation outside the target band and unemployment on the rise particularly in the lower age bands.
December 2025 was the first time in in 32 months where all other creditors applications amounted to more than those advertised by the IRD. I would be hesitant to read to much into this however due to the Christmas close down period December is traditionally a slower month for IRD winding up applications. If this had happened in any other month it may have been worth more of a mention.
The Auckland High Court dealt with more winding up applications than the rest of the country combined in 2025 700 applications vs 589 applications. That is a fair bit of creditor enforcement and a wide margin between Auckland and the rest of the country,
Being the largest city in NZ by population cap Auckland draws increased business numbers, there will in turn be increased business failures and increased creditor enforcement. Though by population cap Auckland is only 34.14%, making up 54.31% of the winding up applications is still a touch high.
Christchurch sits in the 2nd spot dealing with 116 applications vs 2024 where they say 87, overall, up from 7.79% of the total to 9.00%. Likely a reflection of the slowdown in building work in 2025 post rebuild and all the slowdown in new build developments happening in the region after a few big years of new homes.
Hamilton managed to leapfrog 2024's 3rd place holder Wellington, a combination of Hamiltons increase in applications and Wellingtons applications in 2025 dropping to 72 from 80 in 2024.
Tauranga and Rotorua fill out the top 5 in the same order as 2024.
Notably for the rest of the High Courts Whangarei saw a sizable increase going from 10 applications in 2024 to 36 applications in 2025.
Company Insolvencies – Liquidations, Receiverships, and Voluntary Administrations
December 2025 finished out a strong year for corporate insolvency appointments, the months was slightly down in 2024 but overall, for the year it ended up around the totals from 2011. So, while a new high for recent years and above the 3,000 predicted last year it is still 600+ appointment down on the 2009 peak.
2025 3,163
2011 3,034
2010 3,438
2009 3,797
2008 3,645
January 2026 on the other hand took off with a hiss and a roar posting 114 appointments in a traditionally quitter month setting the scene for another busy year. While not quite at GFC levels again for January we are still right around the appointment levels seen in the 2009 shoulder years.
With the high levels of winding up application this month and towards the end of 2025 the number of court appointed liquidations is expected to remain high, however with the courts closed in January shareholder insolvent liquidations made up 84% or 96/114 total for the month with Receiverships and Solvent liquidations filling out the rest. Solvent liquidations continue to remain down on their average but we expect to see them pick up as we head into the end of the financial year.
The liquidations taken by the Official Assignee peaked in 2025 off the back of IRD winding up applications. In December 2025 the Official Assignee took 44 of the 76 court appointed liquidations. They continue to be the busiest liquidator in the country.
Personal Receiverships
Personal receiverships slowed in the final quarter of 2025 finishing out the year slightly down on 2024. This slowdown has carried through to January 2026 with only 1 new appointment in the month. As corporate insolvencies continue at elevated levels we expect this to pick up over 2026 as companies default the creditors come calling on the stakeholders that have provided security over their personal assets in order to recover something on their debt.
Personal Insolvencies – Bankruptcy, No Asset Procedure and Debt Repayment Orders.
Personal insolvency figures have remained stable at only slightly elevated levels for the 2025 year. When compared to the corporate insolvency levels the two have previously tracked along together while in the last 2 years corporate insolvencies have tracked up while personal insolvency has remained largely flat.
At this point we continue to expect more of the same for the first half of 2026 as we head into the election.
Year on year the 2025 figures were above the last 3 years, while on the increase they remain behind the 2021 figures. This period remains one of the lowest bases for personal insolvency figures.
Where to from here?
2026 will be an interesting year with an election in the tail end, based on 2024 and 2025 insolvency figures appointments should continue to track up. The economy is by no means in the free and clear and has some rough time ahead on the way to recovery. How this plays out with the wait and see approach people take in an election year means the pain may be prolonged and pushed out into 2027.
As always its better to take action and act early, it will often get a better result for all stakeholders.
If you want to have a chat about any points raised or an issue you may have you can call on 0800 30 30 34 or email This email address is being protected from spambots. You need JavaScript enabled to view it..