Bankruptcies and company failures set to soar in the UK
It has been revealed that bankruptcy petitions in UK have increased by 7% in the third quarter of 2008 compared with the same period in 2007. It was reported by the Ministry of Justice that 13,653 bankruptcy petitions were passed to courts in England in the third quarter of 2008 alone. Over the same period it has also been confirmed that 3,184 companies received winding-up petitions which went to the High Court and county courts of England and Wales. This is a rise of 13% on the same period last year which is worrying.
However the most worrying aspect of these rises in bankruptcy petitions and winding up orders is the fact that we have by no means seen the worst of both the UK recession and the effect on the UK consumer. Many leading debt agencies are expecting bankruptcy to soar in the UK in 2008 and 2009 as many in the country give in to the inevitable need to reorganise their finances.
The other major problem is the fact that there is a time lag between the bottom of the UK economic cycle and the peek of the bankruptcy and winding-up cycle with the worst yet to come.
Share this..
Related stories
British Airways under more pressure
Yesterday's attempted terrorist attack on a plane bound for the US has led to a massive crackdown on security and substantial delays on all flights to the US. The US authorities have pushed through a number of immediate security "improvements" which will see hand luggage restrictions put in place and see companies such as British Airways incurring significant costs. This could not have come at a w...
Read MoreEric Daniels turns down £2.3 million Lloyds bank bonus
Chief executive Eric Daniels has today announced he will turn down a £2.3 million bonus from Lloyds bank. This is the second year in succession that he has refused to take up his bonus entitlement although he is still on a salary of £1 million a year. So why has Eric Daniels turned down this enormous bonus? In a trend which is hitting the UK banking sector, Eric Daniels is the fourth prominen...
Read MoreNorthumbrian Water Issues Alert to Customers
While their charges are fixed until 2010 due to an agreement with OFWAT it seems that many customers of Northumbrian Water will see a sharp rise in their bills once the agreement runs out. The company has issued a statement confirming a major rise in energy costs and the need to make substantial investment into a number of areas, including flood prevention.
This is yet another blow...
Reduced Christmas spending 'will be blamed on Santa'
Some credit crunched families are looking to buy less pricey presents for their families this year - and are blaming Santa Claus in the process.According to new research from Netmums.com, 44 per cent of mothers are planning to blame St Nick's belt-tightening - rather than their own - for the cut-price gifts.The website also found that 49 per cent were planning to maintain their current spending le...
Read More