Company insolvencies rise by 10%
Published: 4th May 2012 10:49:14
The number of companies that went insolvent in England and Wales in the first three months of the year rose by 10%, Insolvency Service figures show.
They show that 1,290 firms had receivers or administrators appointed, compared with 1,173 in the final three months of last year.
The number of people being declared insolvent in England and Wales fell slightly during the first quarter.
At 28,723, the total was down 1% from the previous quarter.
Joanna Elson, the chief executive of the Money Advice Trust, said: "Insolvency figures only represent the tip of the iceberg when it comes to the scale of debt problems faced by households across the UK."
"Survey data suggests around 10 million individuals in the UK (around 20% of the adult population) find themselves in a constant struggle to manage their debts."
Compared with a year ago, both corporate and individual insolvencies were down in the first three months of this year.
Banks are showing remarkable levels of forbearance, sometimes even with the firms that are dead from the neck up ”
Company insolvencies fell by 2% and individual ones by 5%.
Among individuals becoming insolvent, the number of bankruptcy orders has dropped by 27% in the past year - despite rising in the past three months - while both debt relief orders (DROs) and individual voluntary arrangements (IVAs) were up on a year ago.
Charles Turner, vice president of the Insolvency Practitioners Association warned that the level of insolvencies may rise further this year.
"More sole traders and partnership businesses [are] seeking advice on debt issues as they struggle to cope with the recession," he said.
"There remains real concern about the prospect of a new wave of personal insolvency casualties with many consumers facing further challenges to their household budgets, not least from rising mortgage costs."
David Birne, an insolvency partner at the accountants HW Fisher said the second wave of recession in the UK was showing through with more companies going under due to their debts.
"As output falls, the company insolvency rate in England and Wales is creeping up stubbornly."
"But there are still thousands of 'zombie' companies which are stumbling on, as banks are reluctant to push all but the basket cases into insolvency.
"Banks are showing remarkable levels of forbearance, sometimes even with the firms that are dead from the neck up - and with little prospect of clearing all their debts," he added.
At 17:04:51 in SportWarwickshire director of cricket Dougie Brown says Jonathan Trott is making good progress recovering from a stress-related illness but insists an England return is not an immediate priority.
At 16:55:05 in ScotlandPolice have praised the "sensible attitude and good behaviour" of the majority of people at the Wickerman Festival in southern Scotland.
At 16:50:43 in ScotlandScotland may contain "significant" shale oil and gas resources which could provide an economic boost if successfully exploited, according to a report.
At 16:50:40 in EnglandA team of 100 police officers will be deployed to London's West End in a move to mimic policing in New York.
At 16:49:23 in SportEngland had to settle for silver as Singapore retained their men's table tennis team gold with a 3-1 win in a repeat of the Delhi final in 2010.
At 16:48:01 in EnglandA mental health clinic for older people has opened at St Saviour's hospital in Jersey, after a £3m redevelopment.
At 16:45:50 in SportScotland's Jen McIntosh has claimed a bronze medal in the 50m rifle prone event at the Barry Buddon Shooting Centre.
At 16:41:04 in EnglandGuernsey's government-owned airline, Aurigny, is to fly between the island and London City Airport.
At 16:35:31 in EnglandAbout 40,000 people have gathered in a Birmingham park for one of the biggest Eid events in the UK.
At 16:33:24 in Northern IrelandA man tried to kill his partner by suffocating her with a plastic bag, a quilt and duct tape in front of his elderly mother, a court has been told.
Harvard CitationBBC News, 2012. Company insolvencies rise by 10% [Online] (Updated 4th May 2012)
Available at: http://www.ukwirednews.com/news/1426524/Company-insolvencies-rise-by-10 [Accessed 28th Jul 2014]
News In Other Categories
Britain's biggest private healthcare company has told the BBC that it is charging its own customers too much money and that the industry needs to urgently rethink how it sets prices.
An app to help theatre-goers follow plays in other languages is being launched by a theatre company in Wales.
Warwickshire director of cricket Dougie Brown says Jonathan Trott is making good progress recovering from a stress-related illness but insists an England return is not an immediate priority.
Official figures for England show just 3% of people who develop chronic hepatitis C each year receive treatment to help clear the virus.
Scotland may contain "significant" shale oil and gas resources which could provide an economic boost if successfully exploited, according to a report.
Police have praised the "sensible attitude and good behaviour" of the majority of people at the Wickerman Festival in southern Scotland.