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Company Insolvencies Increase While Personal Insolvency Falls Over Past Year
OFFICIAL figures have revealed a four per cent increase in company insolvency since 2007, although personal insolvency fell by just over 13 per cent.
Seasonally adjusted statistics from the Insolvency Service revealed that the first quarter of this year saw 3,210 liquidations across England and Wales - a two per cent increase on the previous three months and a total increase of four per cent since the same time last year.
Of these company liquidations, 1,085 were compulsory - a 6.6 per cent drop compared to the previous quarter and a 22 per cent drop compared with 2007 - and 2,125 were voluntary liquidations by creditors, a 7.1 per cent increase compared to the last three months of 2007 and a sharp 25.4 per cent rise since the same time last year.
In the year leading up to the first quarter of 2008, some 0.6 per cent of trading companies went into liquidation. This remained unchanged from the previous quarter.
As regards individual insolvencies, there were 25,624 across England and Wales during the first three months of the year - a 1.7 per cent rise since the last quarter of 2007, but a 13.2 per cent drop since the same period last year.
Of these, 15,651 were bankruptcies - a 0.1 per cent increase compared to the previous quarter and a 6.8 per cent drop compared with 2007 - and 9,614 were Individual Voluntary Arrangements (IVAs), a 4.3 per cent increase compared to the previous quarter but a 22 per cent drop since the same time last year.
In recent years there has been a move away from creditor's petitions and towards debtor's petition bankruptcies. Some 84 per cent of bankruptcies were of this kind, by the first quarter of this year.
The percentage of self-employed bankruptcies has dropped from 61 per cent in 1995 to 11 per cent last year.
IVA News posted on 08 May 2008
