Last week, the Insolvency Service released its figures for the first quarter of this year.  The picture is not good.  4,303 companies entered liquidation, an increase of 0o.2% on last quarter and 4.3% on the same period last year.  Compulsory liquidations (achieved by petition to court) numbered 1,238, a decrease of 11.2% on last quarter, and up 11.1% on the same period last year.  Creditors’ Voluntary liquidations (under the control of creditors members) were up by 5.7% on last quarter at 3,065, representing an increase of 1.8% on last year.  Other corporate insolvencies were down 1.8% on last year, with 336 receiverships, 779 administrations and 175 company voluntary arrangements.

Finances are being squeezed across the UK economy, now officially in recession again, and there are cries for government policies that support growth rather than austerity.

For individuals, this squeeze is evident in wage freezes and minimal increases, together with increasing costs of energy, food and transport.  Unemployment is also increasing, with part time work being the only replacement for full time work for many.  The cost of borrowing may be low according to the Bank of England, but financial institutions are taking the opportunity to increase their margins, increasing the costs of mortgages, overdrafts and credit cards.

For businesses, bank funding is all but non-existent, leaving owners, partners and directors the unenviable task of trying to keep their businesses above water.  Growth is practically impossible with no easy sources of funding available.  The Insolvency Service advise that 4,303 companies entered liquidation during the last quarter, emphasising the current problems facing businesses today.

There are ways that assistance can be provided for those in need.  If household income is exceeded by the cost of living, or your business is looking for ways of surviving the current economic climate, a discussion with a licensed insolvency practitioner can help find solutions.  Contact us now for a no-obligation discussion of your current situation.