UK Debt Might Increase by the End of 2010

Even though the latest figures suggest that the number of indebted businesses in the UK is decreasing, experts predict a possible upturn in the number of insolvencies by the end of the year.

As for the second quarter of 2010, the report released by the Insolvency Service shows that there were only 4,080 company liquidations, which is almost 20% less than in the same period of 2009. Of these, less than 50% were compulsory (1,169). Both, receiverships and administrations fell in the previous quarter by 12.5% and 24.3% accordingly.

However, the statistics is not that positive when it comes to personal insolvencies. The proportion of personal debt rose by 5% in 12 months and reached 34,743.

In the opinion of Mr. Law of R3 insolvency trade body, the released figures do not reflect the real situation in Great Britain as millions of people are either struggling with informal debt or have not yet asked for help. That is why R3 experts are determined that UK debt might further increase this year.