STRICTLY EMBARGOED UNTIL 9.30 AM, 4 November 2005 |
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Reference P/2005/334
4 November 2005 |
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STATISTICS RELEASE: INSOLVENCIES IN THE
THIRD
QUARTER 2005
Statistics showing insolvencies in the third
quarter 2005 are published today (4 November) by the Department of
Trade and Industry.
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COMPANY LIQUIDATIONS
There were 3,389 liquidations in England and Wales in the third
quarter of 2005 on a seasonally adjusted basis. This was an
increase of 0.3% on the previous quarter and an increase of
14.2% on the same period a year ago.
This was made up of 1,531 compulsory liquidations, an increase
of 15.3% on the previous quarter and an increase of 35.7% on the
corresponding quarter of last year, and 1,859 creditors
voluntary liquidations, a decrease of 9.4% on the previous
quarter and an increase of 1.0% on the corresponding quarter of
last year.
0.7% of active companies went into liquidation in the twelve
months ended Q3 2005, the same as the previous quarter and the
same as the corresponding quarter of 2004.
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INDIVIDUAL INSOLVENCIES
There were 17,562 individual insolvencies in England and Wales
in the third quarter of 2005 on a seasonally adjusted basis.
This was an increase of 11.6% on the previous quarter and an
increase of 46.0% on the same period a year ago.
This was made up of 12,043 bankruptcies, an increase of 6.0%
on the previous quarter and 30.9% on the corresponding quarter
of last year, and 5,519 Individual Voluntary Arrangements (IVA’s),
an increase of 26.1% on the previous quarter and an increase
of 95.0% on the corresponding quarter of the previous year.
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Number of Insolvencies in England and Wales (seasonally
adjusted) |
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Percentage change |
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2004 |
2004 |
2005 |
2005 |
2005 |
Q3 2005 on: |
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Q3 |
Q4 |
Q1 |
Q2r |
Q3p |
Q2 2005 |
Q3 2004 |
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Company Liquidations |
2,969 |
2,938 |
2,972 |
3,379 |
3,389 |
0.3 |
14.2 |
of which: |
Compulsory |
1,128 |
1,131 |
1,122 |
1,328 |
1,531 |
15.3 |
35.7 |
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Creditors Voluntary |
1,841 |
1,807 |
1,850 |
2,051 |
1,859 |
-9.4 |
1.0 |
Individuals |
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12,032 |
13,020 |
13,781 |
15,739 |
17,562 |
11.6 |
46.0 |
of which: |
Bankruptcies |
9,202 |
9,814 |
10,386 |
11,363 |
12,043 |
6.0 |
30.9 |
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IVA's |
2,830 |
3,206 |
3,395 |
4,376 |
5,519 |
26.1 |
95.0 |
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p = provisional, r = revised |
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View or download the tables
Notes to Editors
1. The Official Insolvency Statistics are the most comprehensive
record of the number of insolvencies and bankruptcies and provide a
more accurate picture for analysing business conditions. The figures
include businesses and individuals, with a breakdown by type of
insolvency procedure. The figures treat Scotland separately (as
insolvencies are defined differently in Scotland) and give an
industrial analysis (for which the figures for England & Wales are
published one quarter in arrears).
2. The statistics are derived from administrative records of the DTI
Insolvency Service and Companies House Executive Agencies. The
figures for company liquidations are made up of compulsory
liquidations (winding-up orders made by the courts) and creditors'
voluntary liquidations registered at Companies House. Figures for
individual insolvencies comprise bankruptcy orders and individual
voluntary arrangements under the Insolvency Act 1986 and deeds of
arrangement under the Deeds of Arrangement Act 1914. Individual
voluntary arrangements and deeds of arrangement are now included
under one column.
3. Numbers of insolvencies are not directly comparable with numbers
of new business formations. Statistics of business start-ups and
closures that are directly comparable with each other have been
assembled from VAT records and are published by the Department of
Trade and Industry. The latest figures are those for 2004, and were
issued in a DTI press notice on 12 October 2005. More detailed
figures are available via the on-line database NOMIS. Additionally,
analysis into the number of firms in the United Kingdom estimated
the total number of businesses at the start of 2004 at 4.3 million.
4. The X11ARIMA program (developed by Statistics Canada) is used for
the seasonal adjustment of the insolvency statistics, this being the
recommended program within UK National Statistics.
5. A company or individual with debts that they are unable to pay as
they fall due is said to be insolvent. 6.
Insolvent companies are dealt with under the Insolvency Act of
1986. They can either be the subject of a compulsory
liquidation (winding-up) order obtained from the Court by a
creditor, member or director or themselves pass a
resolution, subject to the approval of a creditors' meeting that
the company be wound up voluntarily (creditors voluntary
liquidations). In either case they are said to have been
wound-up, and numbers are given in Tables 1 and 6. A third
type of winding-up, members' voluntary liquidation, is not
included because it does not involve insolvency.
7. The Insolvency Act 1986 also introduced the procedures of
company administration orders and company voluntary
arrangements. The administration procedure gives a period of
time during which creditors are restrained from taking action and
a court appointed administrator puts forward proposals to deal
with the company’s financial difficulties. The Company Voluntary
Arrangement procedure aids business by enabling a company in
financial difficulty to come to a binding agreement with its
creditors. These are listed separately in Table 3.
8. The Enterprise Act 2002 introduced revisions to the corporate
administration procedures, replacing Part II of the Insolvency Act
1986 with Schedule B1. These include the introduction of
additional entry routes into administration that do not require
the making of an administration order and a streamlined process
for Administrations whereby a company can in some
circumstances be dissolved without recourse to liquidation. The
primary objective of administration (and of Company Voluntary
Arrangements) is the rescue of the company as a going concern;
where liquidation does result these cases will be recorded under
the insolvency figures at Table 1. These provisions came into
force on 15th September 2003 and Administrations under the
Enterprise Act have been included on Table 3 from Q3 2003
(dissolution follows 3 months after a notice is filed with the
Registrar of Companies, if no objections are raised by the court).
9. Receivership appointments comprise administrative
receivers appointed under the 1986 Act and certain other
receivership appointments, for example under the Law of Property
Act 1925. Due to the use of the same statutory documentation for
different types of receivership, it is not possible to give a
breakdown between them. The provisions of the Enterprise Act 2002
(section 250) have made some changes to the procedures for
administrative receivership from 15 September 2003.
10. For individuals the term bankrupt is used to indicate
insolvency.
11. Insolvent individuals in England and Wales are dealt with
mainly under the Insolvency Act 1986. A bankruptcy order is
made on the petition of the debtor or one of his creditors when
the Court is satisfied that there is no prospect of the debt being
paid. (Figures for bankruptcy orders include administration
orders, which are bankruptcy orders relating to the estate of
a deceased debtor). On 1 April 2004 there was an increase in the
amount of the petition deposit required before a bankruptcy order
can be made. There was a significant rise in the number of
bankruptcy orders made in the last two weeks before the increase
in petition deposits became effective. There are also
individual voluntary arrangements and deeds of arrangement,
which enable debtors to come to an agreement with their creditors.
Table 2 summarises all of the above types of individual
insolvencies.
12. Insolvent individuals in Scotland are subject to
sequestration under the Bankruptcy (Scotland) Act 1985. (There
are no deeds of arrangement or individual voluntary arrangements
in Scotland). The Bankruptcy (Scotland) Act 1993 amending the 1985
Act came into force on 1 April 1993 and will have affected the
number of sequestrations in the Scottish Courts.
13. Under the Insolvency Act 1986 and the Insolvent Partnerships
Order, insolvent partnerships may be wound up like an unregistered
company or administered following bankruptcy orders against the
partners. Insolvent Partnerships can also enter administration or
a voluntary arrangement.
National Statistics
National Statistics are produced to high professional standards set out in the National Statistics Code of Practice. They undergo regular quality assurance reviews to ensure that they meet customer needs. They are produced free from any political interference.
You can find a range of National Statistics on the Internet –
www.statistics.gov.uk
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Press Enquiries: Lorna Dennis
Insolvency Service Press Officer
Public Enquiries
Textphone
(for those with hearing impairment)
Press Office Fax
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+44 (0)207 637 6279
+44 (0)20 7215 5000
+44 (0)20 7215 6740
+44 (0)20 7222 4382
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Non Media
Enquiries
Statistics and
Analysis Directorate:
Margaret Sims
Gary Mills
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+44 (0)20 7215 3305
+44 (0)20 7215 3286
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E-MAIL:
[email protected]
[email protected]
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INTERNET:
http://www.dtistats.net/sd |
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Tables
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Company Liquidations in England and Wales
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Individual Insolvencies in England and Wales
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Administrations, company voluntary arrangements and
receiverships in England and Wales registered at Companies House (not
seasonally adjusted)
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Company Liquidations in England and Wales - Industrial analysis
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Bankruptcies in England and Wales - Industrial analysis
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Insolvencies in Scotland (not seasonally adjusted)
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Company Liquidations in Scotland - Industrial analysis
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Annual rate of company Liquidations (for latest 12 months) - Company
Liquidations in England and Wales as a percentage of the number of
companies registered
Download all tables in Excel (249Kb)
Download the press notice (no tables) as a PDF file
(193Kb)
Download the press notice with tables
as a
PDF file (265Kb)
Download the press notice tables only as
a PDF file (48Kb)
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