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| Insolvencies figures up slightly | Insolvencies figures up slightly |
| (40 minutes 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' | '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. | 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 | 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. | 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. | "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. | 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. |
| Mike Gerrard, a personal insolvency partner at Grant Thornton, said that lenders were much more careful offering credit and this would tip more people into insolvency later in the year. | |
| He said that traditional ways of holding off insolvency, such as remortgaging or extending credit limits, were not options at the moment owing to the credit squeeze. | |
| "This latest increase in personal insolvencies shows the financial strain being wrought on individuals from a combination of high living costs and tighter lending conditions," he said. | |
| "It is a tough year to be struggling with debt." | |
| 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. |
| Provisional figures show a brighter picture for Scotland | |
| 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. | 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. |
| Figures down in Scotland | |
| Provisional results for Scotland showed individual insolvencies stood at 3,275 in the first three months of the year, a 1.3% fall compared with the previous three months and down 5.6% over the same period a year ago. | |
| The 102 company liquidations was down from 166 in the first three months of 2007 but up from 83 in the last quarter of the year. | |
| In Northern Ireland, the provisional results from the Insolvency Service said there were 330 individual insolvencies, down from 343 in the first quarter of 2007 but up from 319 of the previous three months. | |
| The 42 company insolvencies were up from 36 in the first quarter of 2007 but fell from the 48 insolvencies in the last three months of the year. |