Business debt: insolvencies rising

More and more businesses are being declared insolvent, as problems such as high debts and lower demand for their goods and services push them beyond the `point of no return`.

In the first quarter of 2009, there were 4,941 `company liquidations` in England and Wales, according to the latest figures from The Insolvency Service. This was up 56% in just one year - in the first quarter of 2008, a total of 3,168 businesses were liquidated.

"Public attention is often fixed on individual insolvencies," said a spokesperson for debt management company Gregory Pennington, "but corporate insolvencies also have a very real impact on individuals.

"When a company is declared insolvent, this can affect its suppliers and business customers too. They may be unable to find another customer or supplier capable of doing what that company did for a similar price, and this can clearly have a negative impact on their own performance - and their own employees.

"So every corporate insolvency can affect a large number of individuals beyond the company`s own employees. Anyone dealing with a reduced income may be at risk of debt problems unless they have enough savings to tide them over until they find a way to increase their income again."

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Gregory Pennington offer debt management plans as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.