Credit Crunch Causing More People to Seek Insolvency
According to the latest stats from the Insolvency Services, more individuals and corporates are seeking insolvency than before. This could mean that the effects of the credit crunch are just beginning to bite and may continue for quite some time as reported by a popular Solicitor in Hampshire.
There has been an increase of 60% in compulsory debt liquidation in the first quarter of 2009 in England and Wales and a 7% rise compared to the previous quarter. In actual counts, this is about 600 compulsory liquidations and 3,362 creditors’ voluntary liquidations. These are however 65% greater than the corresponding quarter during the previous year.
Over 1,783 Corporates claimed insolvency in the first quarter of this year. This comprises of receiverships, administration and company voluntary arrangements. In total it was a 50% rise compared to a similar period last year.
Similarly individual insolvencies grew by 19% in England and Wales during the second quarter compared to the same period of last year. About 20,000 bankruptcies represented a rise of 0.5% with over 10,000 IVAs representing 3.6%.
Debtors are increasingly issuing their own petition for bankruptcy in the first quarter of 2009; 86% petitions were made which is higher than a similar period in two consecutive years
Professional advice from an Insolvency Solicitor Southampton is essential for a successful insolvency claim. With the internet finding a solicitor has been made that much more easier. All you need to do is search from credible websites or employ credible business directories to find an affordable professional service.