The number of personal insolvencies in England and Wales increased by a fifth in the third quarter of 2016 compared with the same period a year earlier, with 24,251 people registering themselves insolvent between July and September.
Figures published by the Insolvency Service also show that over the same period, bankruptcies increased by 7 per cent compared with the second quarter of 2016, with 3,844 new cases recorded. The number is however still down by 1.5 per cent compared with a year ago.
The rising cost of living and reforms to make personal insolvency procedures more accessible, where individuals facing unmanageable debts can now apply for bankruptcy online, rather than in court, have combined to push insolvency numbers upwards.
The figures also show company insolvencies increased in the third quarter of 2016, with an estimated 3,633 firms entering insolvency – 2.2 per cent higher than in the second quarter.
A separate study does however show that the number of profit warnings at UK-listed companies fell in the three months after the Brexit vote. A total of 68 UK-quoted companies warned on profits in the third quarter, 11 fewer than the same period in 2015, but two more than in the previous quarter.
If you have any concerns about your personal financial situation or that of your business, our partners at BM Advisory are available to assist. As specialists in providing restructuring, recovery and insolvency solutions for businesses and individuals, we understand the issues that can impact on business performance and success, and find innovative solutions for businesses and individuals in distress.
If you would like to have a confidential discussion about any aspect of your personal financial situation or that of your business, contact Andy Pear or Mike Solomons at BM Advisory. Your initial consultation will be free of charge and without obligation, and we will discuss your individual situation and advise the best course of action. Alternatively, please contact your usual Beavis Morgan Partner.