UK bankruptcies jump in third quarter
The government has released figures which show bankruptcies in England and Wales on the increase, with personal debt also on the rise.
In the third quarter, bankruptcies petitioned by the debtor increased 20% on the year, while creditors’ petitions decreased by 19% in England and Wales.
On the whole more people have been declared bankrupt this year than last year
These figures mirror recent research conducted by Leeds University for the Credit Service Association which said last week that, in the UK, more consumers are going into debt to finance their lifestyles.
Paradoxically, despite a slowdown in the economy, company winding-up petitions have improved. Almost 21% fewer companies have gone to the wall this year compared to last year, and figures show a steady decline in company liquidations in each quarter of 2001.
However company insolvencies fell by 5% to 4,164 in England and Wales for the same period a year ago.
Neville Kahn, Business Recovery Services partner at PricewaterhouseCoopers said the continuing levels of consumer confidence over the summer period, together with the government’s more collaborative approach to troubled businesses, contributed to a fall in company insolvencies in the third quarter 2001.
He added: ‘The appearance of UK companies weathering the global downturn may soon give way to a harsh reality as the impact of current market instability leads to a sharp increases in insolvencies.
‘The businesses that successfully ride out the current climate will be thoseprepared to make tough early decisions to head off problems, while makingcash management their number one priority.’
Links
Bankruptcy reform ‘will not remove stigma’
The government insovlency service