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Statistics show business insolvency advice customer numbers drop

Date Added: 09/11/2010  

The numbers of companies needing to take business insolvency advice has fallen, according to new statistics.

They show that company insolvency has dropped by 20 per cent during the third quarter of the year.

Almost 4,000 compulsory liquidations and creditors voluntary liquidations were recorded from July to September 2010.

Steven Law, president of insolvency trade body R3, expressed surprise at the statistics, stating that they indicate the trend for firms to struggle during times of government cuts is not being followed at the moment.

But he pointed out that personal insolvency levels remain high and could be just the tip of the iceberg as a million people need debt advice.

Mr Law predicted that as the government spending cuts begin to bite over the coming weeks and months, the number of firms taking business insolvency advice will once more rise.

He said: "One in five businesses are worried about their current debt levels and should servicing debt become more expensive, this could trigger more corporate insolvencies."

Posted by Miles Pritchard 

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