According to official Government statistics released recently the underlying number of company insolvencies in England and Wales decreased in Q2 2018 but was higher than the same quarter in 2017.
A total of 3,918 companies entered insolvency in Q2 2018 of which the majority, almost 70%, were as a result of creditors’ voluntary liquidations. Total company insolvencies decreased by 12.4% compared to Q1 2018 but increased by 12.0% compared to the same quarter last year.
In contrast, total individual personal insolvencies continued to increase in Q2 2018, reaching the highest quarterly level since Q1 2012. There were 28,951 individual insolvencies in Q2 2018, 62% of which were IVAs (Individual Voluntary Arrangements) which reached a record high.
Total individual insolvencies in Q2 2018 were 4.4% higher than in the previous quarter, and 27.3% higher than in the same quarter the previous year. This continues the increasing trend observed since 2015 and was the highest quarterly total since Q1 2012.
The number of Individual Voluntary arrangements (IVAs) in Q2 2018 was recorded as 17,987 and rose 5.7% compared with Q1 2018. This was the largest quarterly number of IVAs recorded since they were introduced in 1987.
In the 12 months which ended in June 2018, the rate of insolvency was 23.1 per 10,000 adults (1 in 433 adults). This was up from 21.8 insolvencies per 10,000 adults in the twelve months which ended in March 2018 and the highest level recorded since Q2 2013.
If in doubt ReSolve recommends that professional advice should be sought to help manage financial problems or establish long term business plans. We believe that early action is the key to avoiding or surviving financial difficulties. The difference between those that survive and thrive and those that fail is how well they manage difficulties.