Insolvency News – 4th Quarter 08


COMPANY INSOLVENCIES

There were 4,941 compulsory liquidations and creditors’ voluntary liquidations in total in England and Wales in the first quarter of 2009 (on a seasonally adjusted basis).  This was an increase of 7.1% on the previous quarter and an increase of 56.0% on the same period a year ago.

COMPANY INSOLVENCIES

There were 4,607 compulsory liquidations and creditors’ voluntary liquidations in total in England and Wales in the fourth quarter of 2008 (on a seasonally adjusted basis).  “This was an increase of 11.9% on the previous quarter and an increase of 51.6% on the same period a year ago.

This was made up of 1,562 compulsory liquidations (which are up 4.5% on the previous quarter and 34.4% on the corresponding quarter of the previous year), and 3,045 creditors voluntary liquidations (which are up 16.1% on the previous quarter and 62.2% on the corresponding quarter of the previous year). 

In the twelve months ending Q4 2008, approximately 1 in 150 active companies (or 0.7%) went into liquidation, compared to the previous quarter when 1 in every 165 (or 0.6%) of active companies went into liquidation.

Additionally, there were 2,428 other corporate insolvencies in the fourth quarter of 2008 (not seasonally adjusted) comprising 261 receiverships, 2,018 administrations and 149 company voluntary arrangements.  In total these represented an increase of 220.3% on the same period a year ago.

INDIVIDUAL INSOLVENCIES

There were 29,444 individual insolvencies in England and Wales in the fourth quarter of 2008 on a seasonally adjusted basis. This was an increase of 8.2% on the previous quarter and an increase of 18.5% on the same period a year ago.

This was made up of 19,100 bankruptcies (which were up 9.4% on the previous quarter and 22.2% on the corresponding quarter of the previous year), and 10,344 Individual Voluntary Arrangements (IVAs), (which were up 5.9% on the previous quarter and 12.2% on the corresponding quarter of the previous year).

In the fourth quarter of 2008, 84.4% of bankruptcies were made on the petition of the debtor, a similar level to that seen for earlier quarters and for 2006 and 2007 as a whole.  The percentage of bankruptcy orders involving trading debts (self-employed bankruptcies) was 12.3% in the third quarter of 2008 (fourth quarter 2008 figures for trading-related bankruptcies are not yet available).

STATISTICS RELEASE: 2008 SUMMARY, ENGLAND AND WALES

COMPANY INSOLVENCIES
There were 15,535 compulsory liquidations and creditors’ voluntary liquidations in total in 2008 – an increase of 24.2% on 2007.

This was made up of 5,494 compulsory liquidations (which are up 6.4% on 2007), and 10,041 creditors voluntary liquidations (which are up 36.8% on 2007).

The number of companies that went into liquidation in 2008 equates to 0.7% of the active register (or approximately 1 in every 150 active companies).  This is up on 2007 where 0.6% of companies on the active register went in to liquidations (or around 1 in every 180 active companies).  Figure 4 provides a historical view of the liquidation rate in England and Wales since 1984.

In 2008 there were also 6,276 other corporate insolvencies, comprising 867 receiverships, 4,822 administrations and 587 company voluntary arrangements.  In total these represented an increase of 92.1% on 2007.

INDIVIDUAL INSOLVENCIES

There were 106,544 individual insolvencies in England and Wales in 2008, equating to  approximately 1 in every 400 adults (or 0.25%) and broadly the same as in 2007.  Figures 5 and 6 show how the number of insolvencies and the rate have changed since 1987 (when the first IVAs were registered).

The 106,544 insolvencies in 2008 comprised 39,116 Individual Voluntary Arrangements (IVAs), (which were down 7.2% on 2007) and 67,428 bankruptcies (which were up 4.6% on 2007).

In 2008, 83.9% of bankruptcies were made on the petition of the debtor, down marginally from 84.4% in 2007.  For bankruptcy orders there has been a pronounced shift towards debtor’s petition bankruptcies and away from creditor’s petitions in recent years.

We urge our clients not to let your outstanding debts form part of the above statistics and refer your claims to us as soon as possible. As soon as your debtors pass your payment terms please forward the details to us so that we can do our job and collect your money!!

Some of the biggest names in business have failed in the last 12 months in the UK and overseas, companies that in the past were deemed as some of the most trustworthy and solvent companies in the world.   As outlined in the above figures, liquidations are increasing rapidly and we at First Collect International see no reason at present to see this trend stopping.

Please contact First Collect International today to discuss your requirements…