Company insolvencies leap sharply

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The number of company insolvencies in the second quarter of 2009 for England and Wales has lept by 39.1% year-on-year to 5,055, according to figures released by the Insolvency Service earlier today. This represents a continued increase on the previous quarter of 2.9%.

Of the total insolvencies, 1,457 were compulsory liquidations and 3,598 creditors voluntary liquidations. In the case of compulsory liquidations there was a slight drop of 6.8% on the previous quarter.

Taking the 12 months ending Q2 2009, approximately 1 in 120 active companies (0.8%) have gone into liquidation, which shows a slight increase on the previous quarter when the figure was approximately 1 in 130.

Individual insolvencies have also hit a record high with 33,073 individual insolvencies reported in England and Wales during the same period, representing a 27.4% increase on year before.

Of those individuals made insolvent over Q2 2009, 18,870 people were declared bankrupt, 12,225 entered into an individual voluntary arrangement (IVA) with their creditors and the remaining 1,978 signed up to the government’s new debt relief orders.

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