Latest statistics from the Insolvency Service show that corporate insolvencies during 2016 were 16,502, nearly 13 percent up year on year.
It may be hard to believe but many economists are of the view that an increased number of insolvencies is a sign of economic growth.
The Insolvency Service report shows that the majority of corporate insolvencies (11,900) were creditor’s voluntary liquidations.
It should be note though that all other forms of corporate insolvency fell in 2016. Administrations fell by around 4{06aeb1921e0b802d2bd9c766bc98fb11cc6a46c2b0593ed9c88a0e29cf417a34} compared to a year earlier (although this may be as a consequence of increased scepticism from creditors surrounding pre-packs and stringent compliance requirements on IPs which renders the process too costly in many smaller cases), company voluntary arrangements by approximately 7{06aeb1921e0b802d2bd9c766bc98fb11cc6a46c2b0593ed9c88a0e29cf417a34} and receiverships by more than 50{06aeb1921e0b802d2bd9c766bc98fb11cc6a46c2b0593ed9c88a0e29cf417a34}.