Business-related personal bankruptcies increase
More owner-managed small businesses are going bankrupt
PERSONAL BANKRUPTCIES from business debts have rocketed in the construction sector in the first quarter of the year, insolvency trade body R3 has said.
An analysis of official Insolvency Service figures showed that personal bankruptcies went up by 24% in the construction sector in the first three months of the year. There was also a rise of 17.5% in the wholesale and retail sector and an increase of 13% across all sectors.
R3 president Frances Coulson (pictured) said: “Trading-related bankruptcies will be individual-owned, small businesses not covered by limited liability, which either live or die by their financial health. They have less flexibility in doing deals with bankers or offering debentures and less security – making them an easier target for creditors.”