Insolvency News – 1st Quarter 10


COMPANY INSOLVENCIES

There were 4,082 compulsory liquidations and creditors’ voluntary liquidations in total in England and Wales in the first quarter of 2010 (on a seasonally adjusted basis). This was a decrease of 8.4% on the previous quarter and a decrease of 17.8% on the same period a year ago.
This was made up of 1,314 compulsory liquidations (which are down 1.3% on the previous quarter and down 14.8% on the corresponding quarter of the previous year), and 2,768 creditors voluntary liquidations (which are down 11.4% on the previous quarter and down 19.1% on the corresponding quarter of the previous year).

In the twelve months ending Q1 2010, approximately 1 in 120 active companies (or 0.8%) went into liquidation, which is a decrease from the previous quarter, when this figure stood at 1 in 114 (0.9%).

Additionally, there were 1,343 other corporate insolvencies in the first quarter of 2010 (not seasonally adjusted) comprising 356 receiverships, 783 administrations and 204 company voluntary arrangements. In total these represented a decrease of 24.7% on the same period a year ago.

INDIVIDUAL INSOLVENCIES (not seasonally adjusted – see ‘Notes to Editors’ paragraph 13)

There were 35,682 individual insolvencies in England and Wales in the first quarter of 2010. This was an increase of 17.9% on the same period a year ago.

This was made up of 18,256 bankruptcies (which were down 10.7% on the corresponding quarter of the previous year), 11,782 Individual Voluntary Arrangements (IVAs), (which were up 20.1% on the corresponding quarter of the previous year) and 5,644 Debt Relief Orders (DROs).

In the first quarter of 2010, 86.5% of bankruptcies were made on the petition of the debtor, slightly up on recent quarters. The percentage of bankruptcy orders involving trading debts (self-employed bankruptcies) was 13.0% in the fourth quarter of 2009 (first quarter 2010 figures for trading-related bankruptcies are not yet available), taking the figure for 2009 as a whole to 13.1%, up from 12.1% in 2008.