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News - 8 November 2008

Company liquidations increase

The Insolvency Service has reported that company liquidations increased by 25% between July and September with over 4000 voluntary and compulsory liquidations in England and Wales.

The figures from the latest insolvency survey represent a rise of just over 10% on the previous quarter and an increase of just over 26% on the same period in 2007.

There has also been a rise in personal (individual) insolvencies. There were 27,087 in the same period, a rise of 8.8% on the previous quarter and an increase of 4.6% on the third quarter last year.

Bankruptcies increased by 17,341 while another 9,746 people accepted an Individual Voluntary Arrangement (IVA) – a payment plan with creditors that allows individuals in financial distress to avoid bankruptcy.

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