Phil MeekinView Profile
The first quarter’s insolvency statistics for England and Wales have been released.
It sees company liquidations drop to their lowest level since 2007 and individual insolvency hit their lowest point since 2005.
Consequently, both are positive signs reflecting the economic improvement. It may even demonstrate an increased awareness of the need for budgeting and watching personal finances.
Interestingly, while creditors voluntary liquidations total has dropped, compulsory liquidations show signs of increase. At this stage this is most likely a blip in the data.
However should this trend continue, it may suggest a shift in the attitude of company directors. Due to an increasing number preferring to allow the company to enter compulsory liquidation rather than take recovery action. However, this may be because of a lack of awareness regarding the alternative options available.