The number of people declared insolvent in England and Wales reached an all-time high of 135,089 in 2010, but there are signs for encouragement on the horizon.
The Insolvency Service said the 0.7% rise on 2009's figure came despite a 13.6% drop year-on-year in individual insolvencies, as the number of people struggling financially continued to the decline.
But Insolvency Service figures also showed that 30,729 people were declared insolvent in the fourth quarter, down on the previous month by 9.4%.
That drop came as the number of personal bankruptcies fell to its lowest level for more than five years - at 12,049 in the final three months of 2010 – and this was down 29.2% on 2009.
Personal insolvencies have now fallen consistently quarter-on-quarter since the beginning of 2010 and business figures also show further improvements in company liquidations across England and Wales, which fell 15.9% in 2010 to 16,045.
But in a worrying sign for UK businesses, company administrations - often seen as a more representative measure - rose quarter-on-quarter for the first time since the height of the financial crisis.
And individuals are also not out of the woods yet, too. UK Debt charity the Consumer Credit Counselling Service (CCCS) warned that the squeeze on household income this year from tax hikes, spending cuts and soaring inflation was likely to push personal insolvencies higher in 2011.
According to both the Insolvency Service and the CCCS, the best way to avoid insolvency issues is to tackle financial problems early and seek advice before it’s too late.
Our Insolvency team has a wealth of experience in assisting businesses that are struggling with finances and survival. We act for Insolvency Practitioners in the Northwest and nationally in their cases, providing advice and assistance in representing them in Court through the insolvency process. We also act for owners of businesses who experience insolvency issues.
For more information contact Nicola Whittle by email njw@stephensons.co.uk or call 01616 966 229.
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Media information: Lianne Tracey
Stephensons Solicitors LLP
T: 01616 966 229