Personal insolvencies at seven-year high
- AuthorDavid Feakins
The Insolvency Service has reported a staggering 16.2% rise in personal insolvencies in England and Wales since 2017.
The total number of personal insolvencies increased to 115,229 during 2018, the highest it has been since 2011. As levels of debt increase, R3, the insolvency and restructuring trade body, found that “One in five British adults would find it somewhat difficult, very difficult or impossible to immediately pay an unexpected bill for an amount as little as £20, without assistance from an external source”.
The figures reported by the Insolvency Service also show that there has been a rise in corporate insolvency. This number increased to 16,090 in 2018, the highest level it has been since 2014. In fact, the Insolvency Service says that all types of company insolvency (except administrative receivership) had increased during 2018.
R3 have further stated:
“The pressure point for businesses most frequently cited by our members is weak consumer demand. People just don’t have much spare cash at the moment, reflected in the rise in the number of personal insolvencies...Although recent government figures showed that the weekly amount spent by households has hit its highest level since 2005, much of that expenditure went on housing and transport, with less left over for consumer outlay. This is having a big impact on consumer-facing businesses.”
If you are an individual, company or insolvency practitioner and need some advice in relation to an insolvency matter, please do not hesitate to contact us. I am based in our Colchester office and can be contacted on 01245 453870 or firstname.lastname@example.org.