Insolvency experts insists there is likely to be no sign of let-up in the number of businesses going bust after latest figures revealed a rise in insolvencies.
Latest figures from the Insolvency Service show that 4,260 insolvencies occurred in the final three months of last year, up 7% on the previous 12 months.
The Insolvency Service said the figure comprised compulsory liquidations and creditors’ voluntary liquidations.
The growth in insolvencies continues to be underpinned by an increase in the number of individuals entering insolvency.
Louise Brittain, partner in Deloitte’s Contentious Insolvency team, said that 28,973 individuals entered into personal insolvency during the final quarter of 2011, bringing the total number of personal insolvencies to 119,850 in 2011.
“As the labour market continues to deteriorate we will see more households struggle to pay their debts as unemployment levels increase,” she said. “We have seen a noticeable increase in professionals filing for bankruptcy and we’re can see this trend continuing.”
Brittain predicted the number of individuals entering in insolvency in 2012 will top 120,000.