Rise in personal and company insolvencies levels off
by Gill Montia
The Insolvency Service has reported a 17.9% rise in individual insolvencies in England and Wales during the first quarter of 2010, compared to a year earlier.
However, the figure shows a welcome 8.4% drop on the final quarter of 2009.
Among the 35,682 individual cases, 18,256 indebted Britons opted for bankruptcy (down 10.7% year-on-year); 11,782 secured Individual Voluntary Arrangements (up 20.1% year-on-year); and 5,644 made use of the Debt Relief Orders that were introduced in April 2009.
Turning to company insolvencies, there were 4,082 compulsory liquidations and creditors’ voluntary liquidations in the first three months of the year.
The total is up 8.4% on the previous quarter but down by an encouraging 17.8% on the same period a year ago.
Of the firms that went bust, 1,314 faced compulsory liquidation (down 1.3% on the previous quarter and down 14.8% year-on-year).
The balance of 2,768 company insolvencies took the form of creditors’ voluntary liquidations (down 11.4% on the previous quarter and falling 19.1% year-on-year).