Insolvency rates decline in Q4
Commercial insurance
9th February 2010
The number of compulsory liquidations and creditors' voluntary liquidations taking place in England and Wales during the fourth quarter of 2009 fell by 1.1 per cent year-on-year and by 1.7 per cent compared to the previous three months.
Latest data from the Insolvency Service revealed a 2.7 per cent quarterly rise in compulsory liquidations to 1,338, but an annual fall of 14.2 per cent.
Creditors' voluntary liquidations were up by 5.7 per cent on the fourth quarter of 2008, but declined 3.5 per cent over the three months.
The rate at which active companies went into liquidation remained stable at around 1 in 114 firms, something that may be of interest to those seeking insurance for business.
Meanwhile, R3, the insolvency trade organisation, has declared that 916,000 people are struggling with debts but are failing to seek help for their problems, while a further 574,000 are believed to have contacted creditors informally about what they owe.
"We know from previous recessions that early recovery can be a dangerous time," R3 president Peter Sargent warned.
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