The Insolvency Service released their figures for the third quarter of 2011 on 4 November 2011. Whilst the numbers of both individual and company insolvencies are no where near the peaks of late 2009 and early 2010, the sheer volume of cases appears to reflect the continuing tough economic climate.
The total numbers of company liquidations were up 0.1% on the last quarter and up 6.5% on the same quarter last year.
Perhaps the biggest surprise however is the fall in personal insolvency, with the total number of personal insolvencies down 11% on the same quarter last year, with bankruptcies down a staggering 31.2%.
Whilst the number of bankruptcies continue to fall, the recent trend in increasing numbers of Debt Relief Orders and Individual Voluntary Arrangements continue as individuals appear to be addressing problems before their position worsens and bankruptcy becomes the only option.
With such large numbers of insolvencies, it is perhaps not surprising that on 7 November 2011 the government announced proposals for introducing a new, cheaper, quicker and more efficient system for bankruptcy and company windings up.
The proposals largely remove the need for court involvement, with electronic applications being made to Adjudicators who will decide the outcome of the application, with the court only becoming involved in cases where parties are in dispute.
In the current economic climate it is more important than ever that both individuals and companies who are facing tough financial decisions ensure that they obtain advice at an early stage and consider all options available to them. We work with a network of insolvency practitioners to provide clear and concise advice as to the options available to you whether an individual or company and can advise on bankruptcy, winding up proceedings, voluntary arrangements, administrations and liabilities of directors when faced with the insolvency of a company.
For more information please contact Polly Frost on 0117 906 9452 or polly.frost@gregglacthams.com
