Insolvent companies moving towards voluntary arrangments, says Irwin Mitchell
The number of companies in the UK forced into liquidation fell by a fifth in the second quarter, compared to the same period in 2009. But the latest insolvency figures show a move away from administrations and towards voluntary arrangements, according to Birmingham law firm Irwin Mitchell.
The trend towards voluntary arrangements has grown in both personal and company insolvencies, according to the Insolvency Service.
But Andrew Taylor, partner in the corporate recovery team at the Birmingham office of Irwin Mitchell, said that fewer administrations do not necessarily mean fewer businesses are having trouble.
Taylor said: “Businesses seem to be more willing to get into discussion about their financial situations and enlist the help of insolvency practitioners who can assist in coming to an agreement with creditors before it gets too late and is taken out of their hands.”
The Insolvency Service said 4,080 companies were liquidated between April and June, a 0.5 per cent rise on the first quarter, but a decrease of 19.1 per cent on a year ago.
