Although the first quarter of the year saw a decline in the number of corporate insolvencies, personal bankruptcies are at the highest level ever recorded. The figures have increased sharply year on year, with a rise of 17.9 per cent since the same period in 2009.
According to insolvency experts, the figures show that many individuals who are subject to Individual Voluntary Arrangements are failing to keep up with the level of the payments set under the agreement. It is also widely predicted that the recent rise in bankruptcy fees to £600 will prevent some people from being able to declare themselves bankrupt.
In spite of a 17.8 per cent fall in company liquidation figures compared with the same period in 2009, the total does not take into account the large number of insolvencies that are currently progressing through the system. In total, however, including receiverships, administrations and company voluntary arrangements there is an overall reduction in the number of corporate insolvencies of 24.7 per cent year on year.
The corporate insolvency figures have also been affected by the Government’s ‘time to pay’ scheme, which allows smaller businesses to pay their liabilities over time in order to ease cash flow. It is widely predicted that new measures will significantly push up the number of companies becoming insolvent as the scheme is gradually withdrawn.
If you or your business is experiencing financial problems, the earlier you take advice the better. We can advise you of your options.