partner feature
The calm before the storm T
he Insolvency Service has recently released the Insolvency Statistics for England and Wales for the second quarter of 2011 and those figures make for interesting reading.
Personal Insolvencies (to include Bankruptcies, Debt
Relief Orders and Individual Voluntary Arrangements) rose slightly in the second quarter of 2011 by 368 as compared to the first quarter. This is a large reduction as compared to the same quarter in 2010, where 34,743 individuals entered into an insolvency process. Corporate Liquidations reached a peak of 19,077
during the year 2009, reducing slightly to 16,045 during 2010.
Suzi said: “The effects of the credit crunch had an effect
on certain industries which resulted in the unusually large number of corporate liquidations during 2009. Corporate liquidations, however, reduced during 2010, although the statistics recently issued by the Insolvency Service show that corporate insolvencies have increased during the second quarter of 2011 as compared to the same quarter last year.” “While there has been a rise in those comparative
quarters, that rise is in reality small (a rise of only 182). The Bank of England’s decision to keep interest rates at a record low of 0.5 per cent has assisted companies in continuing to trade as they have been able to service their loans.”
Suzi said: “It is worrying to think of the consequences,
not only to companies but to the wider community, should the Bank of England decide to raise interest rates. An interest rate rise of only 0.25 per cent could have severe implications on the economy as a whole. Certain companies are only surviving the current climate due to the low interest rates that we currently have.” “Those individuals on flexible mortgages could find
that they are no longer able to maintain their monthly mortgage payments should a rise occur. Owing to increases in the cost of living, petrol, food, etc, people are increasingly finding that they no longer have any disposable income.” “Should companies or individuals find that they are
experiencing financial difficulties, I would recommend that they obtain advice at an early stage,” said Suzi. “There are more options available if advice is taken early rather than waiting until the bank come knocking on the door.” Purnells, Newport’s only Insolvency Practitioners,
are available to speak and advise on all types of financial difficulties and offer a free initial meeting. Suzi Purnell can be contacted on 01633 214712 or e-
mail at
suzi@purnells.co.uk. Purnells are based at St Marks House, 3 Gold Tops, Newport, South Wales, NP20 4PG. Web:
www.purnells.co.uk
THEbusiness QUARTER 9
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