Bankruptcy is showing no sign of letting up according figures released today
by the DTI. Between October and December last year bankruptcies surged 39% to
12,505. Individual Voluntary Arrangements (IVA) more than doubled, rising 117%.
Personal insolvencies have now doubled over the last three years to 67,580,
while bankruptcies have doubled in the past four years to 47,287. IVAs, too,
have more than doubled to 20,293 in the past two years.
According to KPMG’s analysis of the official figures compiled by the DTI’s
Insolvency service, the 2005 figures represent personal insolvency levels at
their highest ever, and growing at the fastest rate since 1991, when the fall
out from the last major recession was at its peak.
Steve Treharne, head of personal insolvency at KPMG said: ‘The bankruptcy
bubble is getting bigger but seems unlikely to burst for some time yet. The
levels and availability of credit have been increasing for some time and recent
figures from the Bank of England show that this trend is continuing.’
Treharne said that as more people used credit, it was obvious that personal
insolvencies would increase, and predicted that there would be 60,000
bankruptcies and 40,000 IVA’s in 2006.
KPMG’s analysis also shows that since the start of the year 2000 there have
been nearly 240,000 personal insolvencies in England and Wales. That means that
since the turn of the century more than one in every hundred households in
England and Wales have been directly affected by personal insolvency.
The second largest improvement in ‘significant’ levels of financial distress since the EU Referendum was in professional services, found research from Begbies Traynor
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies