Number of insolvencies rises during Q3
Tue, 10 Nov 2009
The number of people registered insolvent during quarter three rose by 28 per cent on the previous year, latest figures show.
According to the Insolvency Service, almost 100,000 people have now registered during 2009, while there has also been a 20 per cent increase in the number of people using individual voluntary arrangements to deal with their financial problems.
Nick O'Reilly, insolvency practitioner and director at Vantis business recovery, said that the prospect of reaching 150,000 redundancies by the end of the year was "unbelievably frightening".
"[It] just goes to show the boom of credit that took place over the last six to ten years," he stated.
Mr O'Reilly said that if this recession created a new attitude towards debt, it was "long overdue".
"Although we are never going to go back to a situation where it is incredibly difficult to get credit, we should certainly tighten up the people who we give credit to," he stated.
Last week, Enterprise Tsar Lord Sugar caused outrage by suggesting that many small companies in the UK were failing enterprises that are not worth lending to.
Disturbed by the comments, the Federation of Small Businesses called for the Amstrad founder's resignation.
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