The number of companies entering insolvency proceedings has risen according to the Insolvency Service website. Administrations, receiverships and company voluntary arrangements are up 10% on the figures of a year ago. In the case of individuals, the new Debt Relief Orders are up 7.6% from last year whilst voluntary arrangements stayed about the same.
What is an interesting trend is that in about 20% of bankruptcies up to June 2011 there was an element of debt that originated from the business of the bankrupt such as the use of personal credit cards for business debts. This is a trend is expected to continue although newer figures are not yet available. However there are ways to limit the impact of liquidations and insolvencies which is where we can assist in the restructuring of companies to isolate debt or assets.
