Q3 insolvency statistics show increase in company insolvencies - Resolve Group UK

Q3 insolvency statistics show increase in company insolvencies

Resolve Group UK

Q3 insolvency statistics show increase in company insolvencies

According to official Government statistics released on 30th October 2018 the underlying number of company insolvencies in England and Wales increased in Q3 2018, both on the previous quarter and on the same quarter in 2017.

This was driven by a rise in underlying creditors’ voluntary liquidations which increased to their highest level since Q1 2012.

A total of 4,308 companies entered insolvency in Q3 2018, of which the majority 71.6% (3,083) were as a result of creditors’ voluntary liquidations. Total underlying company insolvencies increased by 8.9% compared to Q2 2018.

When compared to the same quarter last year, the underlying number of company insolvencies increased by 19.3%. This was driven by an increase in the underlying number of CVLs in Q3 2018 which was 3,083, an increase of 20.7% on Q2 2018, the highest quarterly level since Q1 2012.

Resolve Group UK

Q3 insolvency statistics show decrease in personal insolvencies

In contrast, total individual insolvencies fell in Q3 2018 from a six year high in Q2 2018. This was driven by a decrease in individual voluntary arrangements, and was partially offset by increases in bankruptcies and debt relief orders.

There were 25,551 individual insolvencies in Q3 2018, 55.8% of which were IVAs, 27.7% were debt relief orders and 16.5% were bankruptcies.

Total individual insolvencies decreased in Q3 2018 and were 10.5% lower than in the previous quarter and 2.5% lower than in the same quarter the previous year.

The number of Individual Voluntary Arrangements in Q3 2018 fell 18.0% compared with a record high in Q2 2018. Bankruptcies increased by 1.7% on the quarter and by 12.0% on the same quarter in 2017.

In the 12 months ending Q3 2018, the rate of insolvency was 23.0 per 10,000 adults (1 in 434 adults), down slightly from the previous quarter and down from 23.2 insolvencies per 10,000 adults in the twelve months ending Q2 2018.

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.

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