This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7378183.stm
The article has changed 5 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| Insolvencies figures up slightly | Insolvencies figures up slightly |
| (about 1 hour later) | |
| The number of people declared insolvent in England and Wales was up slightly in the first three months of 2008, the Insolvency Service has said. | The number of people declared insolvent in England and Wales was up slightly in the first three months of 2008, the Insolvency Service has said. |
| The number of individual insolvencies stood at 25,264, up by 1.7% compared with the previous three months. | The number of individual insolvencies stood at 25,264, up by 1.7% compared with the previous three months. |
| But it was still 13.2% fewer than over the same period a year ago. | But it was still 13.2% fewer than over the same period a year ago. |
| Company liquidations were up 2% on the previous three months and rose by 4% compared with the same period a year ago to 3,210. | Company liquidations were up 2% on the previous three months and rose by 4% compared with the same period a year ago to 3,210. |
| Slight shift | Slight shift |
| The figures for individuals showed the first rise in more than a year but were in line with analysts' predictions. | The figures for individuals showed the first rise in more than a year but were in line with analysts' predictions. |
| Of the 25,264 individual insolvencies, there were 15,651 bankruptcies. This is the traditional way of escaping debts. | Of the 25,264 individual insolvencies, there were 15,651 bankruptcies. This is the traditional way of escaping debts. |
| This showed a 0.1% rise on the previous three months, but was down 6.8% on the same quarter in 2007. | This showed a 0.1% rise on the previous three months, but was down 6.8% on the same quarter in 2007. |
| The number of individual voluntary arrangements (IVAs) was up 4.3% on the previous three months, to 9,614. | The number of individual voluntary arrangements (IVAs) was up 4.3% on the previous three months, to 9,614. |
| But this form of insolvency - when a deal is struck with creditors and there is supposedly less stigma - has fallen in popularity compared with a year ago. The number was down 22% on the same three months last year. | But this form of insolvency - when a deal is struck with creditors and there is supposedly less stigma - has fallen in popularity compared with a year ago. The number was down 22% on the same three months last year. |
| 'Upward trend' | |
| Pat Boyden, a personal insolvency specialist at PricewaterhouseCoopers (PwC), said that the effect of rising food and fuel prices meant that a rise in personal insolvencies could be expected for the rest of 2008. | |
| We expect an upward trend for the rest of the year Pat Boyden, insolvency specialist | |
| He said unsecured debt was beginning to rise again, with people turning to credit cards to pay for the increase in their household bills. | |
| "We expect an upward trend for the rest of the year," he said. | |
| He said that the three-month on three-month rise in IVAs could be the result of a new protocol, agreed in February. This ended a long-running dispute between creditors and IVA providers as to whether this form of insolvency was best for consumers. | |
| Corporate change | Corporate change |
| Analysts had predicted that corporate liquidation levels would rise significantly owing to the effects of the credit crunch. | Analysts had predicted that corporate liquidation levels would rise significantly owing to the effects of the credit crunch. |
| Earlier in the week accountants PwC suggested that insolvencies among companies had shot up, increasing 21% in the first quarter of 2008 compared with the previous three months. | |
| But the Insolvency Service figures painted a much more positive picture for companies. | But the Insolvency Service figures painted a much more positive picture for companies. |
| The 1,085 companies going into compulsory liquidation was down 6.6% on the previous quarter and a 22% fall on the same period in 2007. | The 1,085 companies going into compulsory liquidation was down 6.6% on the previous quarter and a 22% fall on the same period in 2007. |
| The remaining 2,125 were creditors' voluntary liquidations, which showed an increase of 7.1% on the previous three months and a rise of 25.4% on the first quarter of 2007. | The remaining 2,125 were creditors' voluntary liquidations, which showed an increase of 7.1% on the previous three months and a rise of 25.4% on the first quarter of 2007. |