Quarter 1 2015 Insolvency Statistics Review
Quarter 1 2015 Insolvency statistics review
The latest Insolvency Statistics released highlights that the liquidation rate was at its lowest level since Q4 1984; the earliest period it is possible to calculate the rate. The latest figures show that only 0.5% of active companies in England & Wales entered into some type of liquidation process in the last quarter which totals around 4,052 companies. This continues the decreasing trend of company insolvencies for a 5th quarter in a row.
Changes in company liquidation rates are related to economic conditions and as the economy has slowly been recovering across the last 12 months or so, this supports the decrease in company liquidation figures of the last quarter.
The personal insolvency figures show that Individual Voluntary Arrangements; (IVAs) comprise of 50% of all individual insolvencies in Q1 2015; despite a -23% drop from Q1 2014. There has been a broad trend of IVAs being within the range of 10,000 to 15,000 since 2008 and these latest figures continue to support this trend.
Richard Simms, Managing Director comments: “The continual drop in insolvency figures supports the notion of a stronger economy. With the Election upon us it will be interesting to see how these figures change depending on who the next government will be.”