Legal Updates

Insolvencies ''fall'' in England and Wales

Date:  06 Aug 2008

Fewer professionals in England and Wales were declared insolvent during the past year despite the effects of the credit crisis, according to reports.

An eight per cent reduction from was seen on figures from 2007, with the number of individual insolvencies standing at 24,553.

Falls in both the numbers of those declared bankrupt and those taking out individual voluntary arrangements (IVAs) were witnessed within this total.

Charles Turner, director of personal insolvency at PricewaterhouseCoopers, said he was "not particularly surprised" the numbers had fallen slightly.

However, he added that "the trickle-down effect of the credit crunch" may not yet have affected bankruptcy and IVA figures.

According to Mike Gerrard, a personal insolvency partner at Grant Thornton, individuals had appeared to succeed in "reining in their spending and riding out the tough times longer than anticipated", although he added that this was "unlikely to last".

Professionals concerned about the health their personal finances or those of their company may wish to seek legal advice.

Michael Ellis is an insolvency expert working at VT and dealing with all aspects of insolvency law.

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