OFFICIAL Statistics Release: Insolvencies In The Third Quarter 2008 - BRs up 9 to 12%

fermi · 7 November 2008 at 10:54AM

http://www.insolvency.gov.uk/otherinformation/statistics/200811/index.htm

Statistics showing insolvencies in the third quarter of 2008 are published today (7 November) by The Insolvency Service.

INDIVIDUAL INSOLVENCIES

There were 27,087 individual insolvencies in England and Wales in the third quarter of 2008 on a seasonally adjusted basis. This was an increase of 8.8% on the previous quarter and an increase of 4.6% on the same period a year ago.

This was made up of 17,341 bankruptcies (which were up 12.1% on the previous quarter and 9.5% on the corresponding quarter of the previous year), and 9,746 Individual Voluntary Arrangements (IVAs), (which were up 3.3% on the previous quarter but down 3.1% on the corresponding quarter of the previous year).

For bankruptcy orders there has been a pronounced shift towards debtor’s petition bankruptcies and away from creditor’s petitions in recent years. In the third quarter of 2008, 83.4% were made on the petition of the debtor, a similar level to that seen for 2006 and 2007 as a whole.

The percentage of bankruptcy orders involving trading debts (self-employed bankruptcies) has fallen from 70% in 1990 (the earliest for which reliable figures exist) to 11.2% in the second quarter of 2008 (third quarter 2008 figures for trading-related bankruptcies are not yet available). It should be noted, however, that figures for 2007 onwards are based on a revised classification and are not entirely consistent with earlier years figures.

Follow the first link for statistics for Scotland and Company insolvencies.

fermi · 7 November 2008 at 11:03AM

Comment from Payplan here:

http://www.payplan.com/debt-news/2008/11/07/debt-in-2009-latest-insolvency-figures/

And BBC News.

Link: More people and firms going bust

There has been a sharp rise in the number of people and companies being declared insolvent in England and Wales, government figures show.

blind-as-a-bat_2 · 7 November 2008 at 11:55AM

Hands up Anybody surprised at this

Question is will it settle or keep rising?

Answers on the back of a postcard too...........

fermi · 7 November 2008 at 12:04PM

R3 are expecting it to go higher. (taking "insolvencies" as a whole)

http://www.r3.org.uk/newsandpress/default.asp?page=1&i=4&id=275

Personal Insolvencies

“By the end of 2009 our members anticipate a worrying increase of 22% on the 2007 figure, which is also incredibly worrying.” said Nick O’Reilly. “Traditionally the route into personal insolvency is not an overnight process and unsurprisingly people will put off dealing with financial problems until they have exhausted all other options.”

For 2007, there were 121,796 personal insolvencies, and respondents thought by the end of this year this figure would get to 132,700 but would reach 148,352 by the end of 2009.

“We would anticipate a nine month lag, with a spike in the figures for the second quarter of 2009,” said Nick O’Reilly.

blind-as-a-bat_2 · 7 November 2008 at 12:23PM

And if yesterdays intrest rate cut backfires it may be worse.

While its a welcome break for many, i cant help thinking the timing is bad, the main time in the year when everyone is tempted 24/7 to spend more than they have got, just hope not many fall into that trap

debtissoeasytogetinto · 7 November 2008 at 12:56PM

Here's a link to the latest.... http://uk.news.yahoo.com/5/20081107/tuk-number-of-bankruptcies-soars-45dbed5.html if that don't work......"A total of 27,087 people were made insolvent during the three months to the end of September.That is 8.8% more than in the second quarter of 2008 and 4.6% more than during the same three months of 2007.
Just under 6000 people in Scotland were declared insolvent, 70% more than during the same three months of 2007.
At the same time the number of companies put into administration soared by more than 50% to 1,007.
But commentators warned that the figures were "the beginning of the storm".
The latest set of figures from the Insolvency Service showed a record number of people were declared bankrupt on a seasonably adjusted basis.
Within the total for individual insolvencies, 17,341 people were made bankrupt during the three months to the end of September.
The figure was 12.1% more than during the second quarter and 9.5% more than during the same period of the previous year.
A further 9,746 people took out individual voluntary arrangements (IVAs), under which interest on debt is frozen in exchange for a set amount being repaid each month.
But the numbers are expected to rise dramatically.
Mark Sands, director of personal insolvency at KPMG, expects a record 150,000 people to be declared insolvent during 2009.
He said: "The downturn and the associated increases in unemployment are starting to have an impact."
Howard Archer, chief UK and European economist at IHS Global Insight, said: "There can be little doubt that the marked rise in the number of individual insolvencies in the third quarter is only the beginning of the storm."
He said recession, rising unemployment, higher debt levels, and increasing numbers of people being trapped in negative equity would all drive up the figures during the coming months"

As BAAB states; coming up for the worst time of the year for spending money...wonder how many people will reign it in...

scootw1 · 7 November 2008 at 5:06PM

The way things are going, people who have been bankrupt previously will be the only people left to lend to. Do you reckon the banks might ease their restrictions a little if that happened?

maxmycardagain · 18 December 2008 at 3:55PM

INDIVIDUAL INSOLVENCIES

There were 27,087 individual insolvencies in England and Wales in the third quarter of 2008 on a seasonally adjusted basis. This was an increase of 8.8% on the previous quarter and an increase of 4.6% on the same period a year ago.
This was made up of 17,341 bankruptcies (which were up 12.1% on the previous quarter and 9.5% on the corresponding quarter of the previous year), and 9,746 Individual Voluntary Arrangements (IVAs), (which were up 3.3% on the previous quarter but down 3.1% on the corresponding quarter of the previous year).
COMPANY INSOLVENCIES
There were 4,001 compulsory liquidations and creditors’ voluntary liquidations in total in England and Wales in the third quarter of 2008 (on a seasonally adjusted basis). This was an increase of 10.5% on the previous quarter and an increase of 26.3% on the same period a year ago.
This was made up of 1,483 compulsory liquidations (which are up 10.9% on the previous quarter and 16.1% on the corresponding quarter of the previous year), and 2,518 creditors voluntary liquidations (which are up 10.2% on the previous quarter and 33.2% on the corresponding quarter of the previous year).

fermi · 18 December 2008 at 4:08PM

Hi max.

There has already been a thread on this, so I'll merge them together. That should let people easily see what has already been said.

yellowmonkey · 18 December 2008 at 4:12PM

No wonder I have got to wait until March.

ym

rog2 · 18 December 2008 at 6:50PM

yellowmonkey wrote: »

No wonder I have got to wait until March.

Are you sugesting that the Insolvency Service might be trying to keep the statistics down, ym? :rolleyes:

OFFICIAL Statistics Release: Insolvencies In The Third Quarter 2008 - BRs up 9 to 12%

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