Insolvencies at all time lows, Company Strike Offs Rife
Whils most people expect insolvencies to have increased over the last few years, Government figures show that the opposite is the case. The latest figures for Q4 2015 showed that Corporate Insolvencies were at their lowest levels since 1989 and Personal Insolvencies were at their lowest level since 2005. A stuttering economy and low interest rates were the cause of the low figures. A recent hike in Court fees and the raising of the debt level for bankruptcy petitions to £5,000 is expected to further suprress personal insolvency numbers.
Company Insolvencies were down to 14,629, a decrease of 10% on the previous year. Personal Insolvencies were 79,965 down 20%.
However, Company Strke Offs where Directors dispose of their companies by application form, or where they are Struck Off for breaching the Companies Act in not filing accounts or completing annual returns, reached a staggering 32,000 in December alone. The figure for the year was 369,500 and the estimated loss of revenue to HMRC exceeds £10 billion per year.