Knowledge Centre
7th November 2008
Insolvencies in England and Wales rose by nearly 9% in the third quarter, new figures have shown.
Latest statistics from The Insolvency Service show that 27,087 people were made insolvent in the three months until the end of September. This is 8.8% more than during the previous quarter, and 4.6% more than in the same three months of 2007.
The number of companies put into administration also grew by more than 50% year-on-year, to 1,007 in the third quarter. And a total of 17,341 people were made bankrupt, a rise of 12% on the second quarter and 9.5% on the same period the previous year.
A further 9,746 people also took out individual voluntary arrangements (IVAs) - where interest on debt is frozen in exchange for a set amount being re-paid each month - a 3.3% rise on the second quarter but 3.0% down on the third quarter of 2007.
Mark Sands, director of personal insolvency at KPMG, predicts that a record 150,000 people will be declared insolvent during 2009.
Howard Archer, chief UK and European economist at IHS Global Insight, also warned of further trouble ahead.
"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.
Insolvencies on the rise
Latest statistics from The Insolvency Service show that 27,087 people were made insolvent in the three months until the end of September. This is 8.8% more than during the previous quarter, and 4.6% more than in the same three months of 2007.
The number of companies put into administration also grew by more than 50% year-on-year, to 1,007 in the third quarter. And a total of 17,341 people were made bankrupt, a rise of 12% on the second quarter and 9.5% on the same period the previous year.
A further 9,746 people also took out individual voluntary arrangements (IVAs) - where interest on debt is frozen in exchange for a set amount being re-paid each month - a 3.3% rise on the second quarter but 3.0% down on the third quarter of 2007.
Mark Sands, director of personal insolvency at KPMG, predicts that a record 150,000 people will be declared insolvent during 2009.
Howard Archer, chief UK and European economist at IHS Global Insight, also warned of further trouble ahead.
"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.
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