fci NEWS4Insolvency News - 1st Quarter 09 COMPANY INSOLVENCIES
There were 4,941 compulsory liquidations and creditors’ voluntary liquidations in total in England and Wales in the first quarter of 2009 (on a seasonally adjusted basis). This was an increase of 7.1% on the previous quarter and an increase of 56.0% on the same period a year ago. This was made up of 1,579 compulsory liquidations (which are up 1.2% on the previous quarter and 43.6% on the corresponding quarter of the previous year), and 3,362 creditors voluntary liquidations (which are up 10.0% on the previous quarter and 62.5% on the corresponding quarter of the previous year).
In the twelve months ending Q1 2009, approximately 1 in 130 active companies (or 0.8%) went into liquidation, compared to the previous quarter when approximately 1 in every 150 (or 0.7%) of active companies went into liquidation.
Additionally, there were 1,783 other corporate insolvencies in the first quarter of 2009 (not seasonally adjusted) comprising 316 receiverships, 1,311 administrations and 156 company voluntary arrangements. In total these represented an increase of 54.0% on the same period a year ago.
INDIVIDUAL INSOLVENCIES
There were 29,774 individual insolvencies in England and Wales in the first quarter of 2009 on a seasonally adjusted basis. This was an increase of 1.6% on the previous quarter and an increase of 19.0% on the same period a year ago.
This was made up of 19,062 bankruptcies (which were up 0.5% on the previous quarter and 23.4% on the corresponding quarter of the previous year), and 10,713 Individual Voluntary Arrangements (IVAs), (which were up 3.6% on the previous quarter and 11.8% on the corresponding quarter of the previous year).
In the first quarter of 2009, 86% of bankruptcies were made on the petition of the debtor, slightly higher than the level seen for earlier quarters and for 2007 and 2008 as a whole. The percentage of bankruptcy orders involving trading debts (self-employed bankruptcies) was 12.9% in the fourth quarter of 2008 (first quarter 2009 figures for trading-related bankruptcies are not yet available), taking the figure for 2008 as a whole to 12.1%, up from 10.9% in 2007.
The above news reiterates our drive to request customers to refer their past due receivables to us as soon as possible. The general trend shows that quite frankly First Collect predicts that insolvencies will again follow the trend and continue to rise again in the next quarter. As soon as your customer exceeds your agreed payment terms and has made the usual excuses - please refer them to First Collect International for assistance at once. Quick referral of your debts has 2 advantages
- your debtor hopefully is still in business
- the costs to collect can be as little as 6% - you could recover 94% of your debt rather than keep 100% of nothing.......!!
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