Statistics revealed that personal insolvencies were substantially higher in the first quarter of this year compared to the previous year, and also increased from the last three months of last year. This is in part down to the increase in IVA’s which have possibly become more accessible but bankruptcy numbers have also risen slightly.

There has also been an increase in corporate insolvencies at the start of this year being higher than this time last year. However it is too early to ascertain whether these figures suggest commencement of a trend.

These figures may be due to a fall in the pound or the introduction of the pension auto-enrolment to smaller firms. The new National Living Wage could have also have had an effect.

The number of company directors receiving disqualifications in excess of 5 years from the Insolvency Service is at its highest level for six years. This is a consequence of a tougher approach by the Insolvency Service on directors where they can prove there has been misconduct.

If you feel your business is struggling, a free consultation with one of our experienced practitioners may be appropriate. Please contact us.