Credit crunch has no impact on bankruptcies – MoJ

Bankruptcy petitions and company wind-ups have gone down in number despite the credit crunch, according to Ministry of Justice (MoJ) figures published today.

The provisional statistics, published quarterly, cover companies winding up and creditors’ and debtors’ bankruptcy petitions issued in the High Court and county courts of England and Wales during the fourth quarter of 2007.

Winding up petitions have decreased by 10 per cent on the last quarter of the previous year, from 3,304 to 2,962, while creditors’ petitions have decreased 11 per cent, from 5,197 to 4,614.

Debtors’ petitions have also reduced in number, decreasing 10 per cent from 13,074 to 11,703.

The numbers suggest that UK business is bearing up well against the credit crunch among lenders following losses resulting from the knock-on effect of a crisis in the US sub-prime mortgage market.

However, the information is taken from court administrative systems and is distinct from the quarterly statistics published by the Insolvency Service, which are derived from administrative records of the BERR Insolvency Service and Companies House executive agencies.