The Insolvency Service has released insolvency statistics for the second quarter of 2010. Broadly, they show an increase in company insolvencies on the previous quarter, but a decrease on the same period a year ago, and a decrease in personal insolvencies on the previous quarter, but an increase on the same period a year ago. The key statistics and trends are as follows:
Personal Insolvencies - Statistics
34,743 individual insolvencies in England and Wales in the second quarter of 2010 made up of:
- 14,982 bankruptcies
- 13,466 individual voluntary arrangements
- 6,295 debt relief orders
Trends
- Individual insolvencies up 5% on the same period a year ago but down 2.7% on the previous quarter
- Bankruptcies down 20.6% on the same period a year ago and down 21.8% on the previous quarter
- Individual voluntary arrangements up 10.2% on the same period a year ago and up 14.1% on the previous quarter
- Debt relief orders (for total debts less than £15k) up a massive 218.3% on the same period a year ago and up 11.5% on the previous quarter
Comment from Rachel Youngs, Solicitor at stevensdrake: "Debt relief orders were only introduced in April 2009 and the impact that they have had on the figures is, therefore, hard to assess. It may be some time before useful comparables can be made. The introduction of debt relief orders may go some way to explaining the decrease in bankruptcies on the same period a year ago."
Company Insolvencies - Statistics
4,080 company insolvencies in England and Wales in the second quarter of 2010 made up of:
- 1,169 compulsory liquidations; and
- 2,911 creditors' voluntary liquidations.
Trends
- Company insolvencies down 19.1% on the same period a year ago but up 0.5% on the previous quarter
- Compulsory liquidations down 21% on the same period a year ago and down 9.9% on the previous quarter
- Creditors' Voluntary liquidations down 18.3% on the same period a year ago but up 5.4% on the previous quarter
"The fall in company insolvencies is a welcome sight but, with the planned rise in VAT and the government spending cuts still to come, the trend may go upwards over the next year." said Rachel
Published - October 2010
This article is provided for general information only. Please do not make any decision on the basis of this article alone without taking specific advice from us. stevensdrake will only be responsible for the advice we give which is specific to you.
