Corporate and personal insolvency statistics for 2016*, published today by the Insolvency Service, regulators of the UK insolvency profession, show that whilst the total number of company insolvencies in 2016 was higher than the previous year, this was largely attributable to a large number (1,796) of personal service companies being liquidated as a result of the closure of a tax loophole, making them unviable.
In general though, the number of company insolvencies last year was mostly unchanged, compared with 2015.
Personal insolvencies did however increase last year for the first time since 2010, driven mainly by an increase in individual voluntary arrangements, which returned to the level seen from 2009 to 2014.
Bankruptcies fell in 2016, but debt relief orders rose because of a change to eligibility criteria.
Commenting on the statistics, Insolvency Service chief executive Sarah Albon said: "It is very distressing to live with unsustainable personal debt so it is important for people to seek advice."
If you have any concerns about your personal financial position or that of your business, speak to our experts at BM Advisory – the sooner advice is taken, the greater the range of options that could be available to you to resolve any issues and get back on the right track.
Contact Andy Pear or Mike Solomons of BM Advisory for more information and an initial free consultation, or get in touch with your usual Beavis Morgan Partner.
*Source: The Insolvency Service 2016 corporate and personal insolvency statistics