Insolvency News – 4th Quarter 09


COMPANY INSOLVENCIES

There were 4,566 compulsory liquidations and creditors’ voluntary liquidations in total in England and Wales in the fourth quarter of 2009 (on a seasonally adjusted basis).  This was a decrease of 1.7% on the previous quarter and a decrease of 1.1% on the same period a year ago.

 

This was made up of 1,338 compulsory liquidations (which are up 2.7% on the previous quarter but down 14.2% on the corresponding quarter of the previous year), and 3,228 creditors voluntary liquidations (which are down 3.5% on the previous quarter but up 5.7% on the corresponding quarter of the previous year).In the twelve months ending Q4 2009, approximately 1 in 114 active companies (or 0.9%) went into liquidation, which is approximately the same as the previous quarter.

Additionally, there were 1,465 other corporate insolvencies in the fourth quarter of 2009 (not seasonally adjusted) comprising 397 receiverships, 849 administrations and 219 company voluntary arrangements.  In total these represented a decrease of 39.7% on the same period a year ago (this should be interpreted in light of the Q4 2008 figure for administrations).

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

There were 35,574 individual insolvencies in England and Wales in the fourth quarter of 2009. This was an increase of 24.9% on the same period a year ago.

This was made up of 17,007 bankruptcies (which were down 5.5% on the corresponding quarter of the previous year), 13,219 Individual Voluntary Arrangements (IVAs), (which were up 26.3% on the corresponding quarter of the previous year) and 5,348 Debt Relief Orders (DROs).

In the fourth quarter of 2009, 84% of bankruptcies were made on the petition of the debtor, slightly down on the three previous quarters, but comparable with 2008 as a whole.  The percentage of bankruptcy orders involving trading debts (self-employed bankruptcies) was 12.4% in the third quarter of 2009 (fourth quarter 2009 figures for trading-related bankruptcies are not yet available), which is a decrease from the previous quarter, but comparable to the level in 2008 as a whole.