The Insolvency Service has released insolvency statistics for January to March 2015.
Company insolvencies in England and Wales were at their lowest level since Q4 2007, with personal insolvencies continuing to fall.
- Creditors’ voluntary liquidations were at their lowest level since Q2 2008. However, compulsory liquidations increased for the first time since Q1 2014.
- The number of administrations increased on the previous quarter by 10%, but were down on the year, while receiverships and company voluntary arrangements both declined to their lowest level since Q4 2007.
- Personal insolvencies continue to fall, as the total number of people who became insolvent in England and Wales decreased for the third successive quarter, to the lowest level since Q4 2005.
- The number of individual voluntary arrangements was at its lowest level since Q4 2008. Both bankruptcies and DROs continued to decrease.
The scheduled changes to debt relief orders may have had some effect, with people trying to hold off with a debtor petition for the more generous conditions due in October 2015, when the bankruptcy creditor petition limit will be raised from £750 to £5000.
Graham Bushby, of Baker Tilly, says that despite the positive picture, many companies are still experiencing significant financial distress, and that there are a number of reasons why we could see insolvency levels rising again within the next one to two years.