News: Tough financial year ahead says Rotherham debt expert
Rotherham-based insolvency practitioner Paul Moorhead is warning of a tough economic year ahead in the wake of the latest insolvency statistics.
Official figures released by the Government show some signs of hope for businesses, as the rate of company insolvencies started to slow at the end of last year.
But there's bad news for individuals, as the number of people getting into serious financial difficulty continue to spiral upwards.
Paul, of debt advisors Moorhead Savage, based at Moorgates Crofts business centre in Rotherham, predicts that regardless of recent talk of economic recovery, the next 12 months could still be challenging.
Figures for the last three months of 2009 show that the number of companies becoming insolvent was down slightly on the same quarter the previous year but the number of individuals going bust went up by 25 per cent on the same period in 2008 and hit record levels in 2009.
Over the past 12 months the number of companies being forced into liquidation by creditors has gone down but the number of businesses choosing to go into liquidation has risen.
Commenting on the statistics, Paul said: "It's clear from these figures that the effects of the recession have been dramatic.
"The number of individuals becoming bankrupt or using insolvency law to deal with their debt is at an all-time high.
"Businesses are really suffering, with more companies going to the wall than at any time since the last recession in the early 1990s."
He also pointed out that the official statistics only showed those people and businesses that had asked for help, or who had ended up in court over
their debts.
Paul will be the guest speaker at the next Barnsley and Rotherham Chamber of Commerce Business Seminar on February 18.
Official figures released by the Government show some signs of hope for businesses, as the rate of company insolvencies started to slow at the end of last year.
But there's bad news for individuals, as the number of people getting into serious financial difficulty continue to spiral upwards.
Paul, of debt advisors Moorhead Savage, based at Moorgates Crofts business centre in Rotherham, predicts that regardless of recent talk of economic recovery, the next 12 months could still be challenging.
Figures for the last three months of 2009 show that the number of companies becoming insolvent was down slightly on the same quarter the previous year but the number of individuals going bust went up by 25 per cent on the same period in 2008 and hit record levels in 2009.
Over the past 12 months the number of companies being forced into liquidation by creditors has gone down but the number of businesses choosing to go into liquidation has risen.
Commenting on the statistics, Paul said: "It's clear from these figures that the effects of the recession have been dramatic.
"The number of individuals becoming bankrupt or using insolvency law to deal with their debt is at an all-time high.
"Businesses are really suffering, with more companies going to the wall than at any time since the last recession in the early 1990s."
He also pointed out that the official statistics only showed those people and businesses that had asked for help, or who had ended up in court over
their debts.
Paul will be the guest speaker at the next Barnsley and Rotherham Chamber of Commerce Business Seminar on February 18.
Moorhead Savage website
RotherhamImages: moorheadsavage.co.uk
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