Company liquidations up 17% on 2005

Figures released this month by the Insolvency Service show a significant rise in company liquidations over the past year.

Here is a summary of the statistics for last quarter.

Company Liquidations

There were 3,439 liquidations in England and Wales in the first quarter of 2006 on a seasonally adjusted basis. This was an increase of 7.6% on the previous quarter and an increase of 17.0% on the same period a year ago.

This was made up of 1,428 compulsory liquidations, an increase of 11.0% on the previous quarter and an increase of 29.5% on the corresponding quarter of the previous year, and 2,011 creditors voluntary liquidations, an increase of 5.2% on the previous quarter and an increase of 9.5% on the corresponding quarter of the previous year.

0.7% of active companies went into liquidation in the twelve months ended Q1 2006, the same as the previous quarter and the same as the corresponding quarter of 2005.

Individual Insolvencies

There were 23,351 individual insolvencies in England and Wales in the first quarter of 2006 on a seasonally adjusted basis. This was an increase of 12.9% on the previous quarter and an increase of 73.4% on the same period a year ago.

This was made up of 15,389 bankruptcies, an increase of 12.5% on the previous quarter and an increase of 51.2% on the corresponding quarter of the previous year, and 7,961 Individual Voluntary Arrangements (IVA's), an increase of 13.7% on the previous quarter and an increase of 141.9% on the corresponding quarter of the previous year.