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Reference INS/Com/05
Date 2 May 2008

STATISTICS RELEASE: INSOLVENCIES IN THE FIRST QUARTER 2008

Statistics showing insolvencies in the first quarter 2008 are published today (2 May) by the Insolvency Service.

COMPANY LIQUIDATIONS

There were 3,210 liquidations in England and Wales in the first quarter of 2008 on a seasonally adjusted basis. This was an increase of 2.0% on the previous quarter and an increase of 4.0% on the same period a year ago.

This was made up of 1,085 compulsory liquidations, a decrease of 6.6% on the previous quarter and a decrease of 22.0% on the corresponding quarter of the previous year, and 2,125 creditors voluntary liquidations, an increase of 7.1% on the previous quarter and an increase of 25.4% on the corresponding quarter of the previous year.

In the twelve months ending Q1 2008, 0.6% of active companies went into liquidation, the same as the previous quarter and the corresponding quarter of 2006.

INDIVIDUAL INSOLVENCIES

There were 25,264 individual insolvencies in England and Wales in the first quarter of 2008 on a seasonally adjusted basis. This was an increase of 1.7% on the previous quarter and a decrease of 13.2% on the same period a year ago.

This was made up of 15,651 bankruptcies, an increase of 0.1% on the previous quarter and a decrease of 6.8% on the corresponding quarter of the previous year, and 9,614 Individual Voluntary Arrangements (IVAs), an increase of 4.3% on the previous quarter and a decrease of 22.0% on the corresponding quarter of the previous year.

For bankruptcy orders there has been a pronounced shift towards debtor’s petition bankruptcies and away from creditor’s petitions in recent years. By the first quarter of 2008, 84% were made on the petition of the debtor.

The percentage of bankruptcy orders involving trading debts (self-employed bankruptcies) has fallen from 61% in 1995 to 11% in 2007 (first quarter 2008 figures for trading-related bankruptcies are not yet available). It should be noted, however, that figures for 2007 are based on a revised classification and are not entirely consistent with earlier years figures.

Number of Insolvencies in England and Wales (seasonally adjusted) ¹

Percentage change

2007

2008

Q1 2008 on:

Q1r

Q2r

Q3r

Q4r

Q1p

Q4 2007

Q1 2007

Company Liquidations

3,087

3,051

3,142

3,146

3,210

2.0

4.0

of which:

Compulsory

1,392

1,334

1,277

1,162

1,085

-6.6

-22.0

Creditors Voluntary

1,695

1,717

1,865

1,984

2,125

7.1

25.4

Individuals

29,116

26,774

25,900

24,854

25,264

1.7

-13.2

of which:

Bankruptcies

16,788

16,214

15,842

15,636

15,651

0.1

-6.8

IVAs

12,328

10,561

10,058

9,218

9,614

4.3

-22.0

p = provisional, r = revised

¹ Longer series back to 1998 are presented in the accompanying detailed tables

INSOLVENCIES IN SCOTLAND AND NORTHERN IRELAND

The following tables present recent trends in insolvencies in Scotland and Northern Ireland, complementing those for England and Wales above (longer series back to 1998 are presented in the accompanying detailed tables).

Number of Insolvencies in Scotland (not seasonally adjusted)

Percentage change

2007

2008

Q1 2008 on:

Q1p

Q4 2007

Q1 2007

Company Liquidations

166

165

125

102

22.9

-38.6

of which:

Compulsory

132

131

105

33.8

-28.0

Creditors Voluntary

-41.7

-79.4

Individuals

3,471

3,498

3,527

3,318

3,275

-1.3

-5.6

of which:

Sequestrations

1,505

1,606

1,545

1,563

1,395

-10.7

-7.3

Protected Trust Deeds

1,966

1,892

1,982

1,755

1,880

7.1

-4.4

p = provisional

Number of Insolvencies in Northern Ireland (not seasonally adjusted)

Percentage change

2007

2008

Q1 2008 on:

Q1p

Q4 2007

Q1 2007