Insolvencies for both companies and individuals climbed considerably in the first quarter of this year, putting them at some of the highest levels seen for several years in England and Wales.
The statistics published by the government’s Insolvency Service revealed that company insolvencies hit their highest quarterly level since the first quarter of 2014 between January and March this year.
Meanwhile, the figures for individual insolvencies reached their highest level since the third quarter of 2012. According to the organisation, this was primarily as a result of a record high number of people entering individual voluntary arrangements, as well as an increase in bankruptcies and debt relief orders.
The insolvency rate among individuals has increased, which means that these kinds of financial issues affect one in every 458 adults.
Where companies were concerned, the jump in insolvencies was attributed primarily to “a rise in underlying creditors’ voluntary liquidations, and compulsory liquidations”.
Perhaps unsurprisingly given the collapse of Carillon, the construction industry saw the highest number of insolvencies in the year ending in the first quarter of 2018, the organisation noted.
As a business, being owed money can be problematic, especially when you’re relying on being paid for the services you provide in order to meet your own outgoings. If you are struggling to collect from debtors, you may want to hire a debt recovery investigator in Surrey to ensure you receive the money owed to you.
One insolvency expert in the south of the UK has predicted that more businesses will fail in the coming months.
Robert Bajaj, a consultant solicitor at Ellis Jones, told an insolvency conference in Southampton last month that “all the elements for a perfect storm are falling into place” when it comes to business financial problems.