Personal and Corporate Insolvency increases

The quarter on quarter increase in personal insolvency of 1.2 per cent (up from 30,145 to 30,513) is to be expected, given job cuts and compulsory redundancies in both the public and private sector. Thirty per cent of people do not have any savings according to R3’s lastest personal debt snapshot, with many households failing to have a contingency plan for any fall in income or increased outgoings. Therefore, a swift change in circumstance such as losing a job is likely to have pushed many individuals into insolvency. In reality, the statistics may be even higher as this data does not capture the figures for those in informal insolvency procedures such as debt management plans.

The consecutive quarter increase in corporate insolvency of 2.7 per cent (up from 4,121 to 4,233) is unsurprising given the latest GDP figures revealing marginal growth of just 0.2 per cent.

Link to the R3 website