Statistics released by the insolvency service last week showed that corporate insolvencies are continuing to decline throughout 2014. Individuals are continuing to suffer as personal insolvencies carry on rising as the trend for individual voluntary arrangements remains strong.
Falling by nearly 7% last quarter (Q2) corporate liquidations are down to 3,461, a drop of 15.1% compared to Q1 2013. In total there were 2,487 CVLs (creditors’ voluntary liquidations) in Q2, 18.1% lower than that of the same period last year.
The report also showed that 410 companies entered administration in Q1 2014, there were 171 receiverships and 1 in 177 companies went into liquidation between June 2013 and June 2014. Almost 1,000 companies went into compulsory liquidation in Q2 2014, a drop of almost 10% compared to Q1.
Although the year saw a decrease in business insolvencies, personal insolvencies increased by 5.1% from Q1 last year, bringing the personal total to 27,029. Surprisingly although there were decreases in both personal bankruptcies (15.9%) and debt relief orders (1.8%), individual voluntary arrangements (IVAs) rose by over 20% compared to the same period a year ago. The sharp increase in IVAs is a continuing trend that has continued since their introduction in 2007, with individuals seeming to prefer these measures over applying for full bankruptcy proceedings.
If you need help or guidance regarding any insolvency issue, then please get in touch.