Sunday, 5 April 2009

UK personal bankruptcies running close to 350 per day

Yesterday I pointed to some recent statistics for personal bankruptcies in the United States and today there are some comparable stats available for the UK from the following source.

Begbies Traynor, the insolvency and restructuring group...forecasts that as many as 125,000 people will go bust this year – well above the 107,000 peak in 2006 – equivalent to 342 people a day. Richard Goodwin, editor of The London Gazette, the newspaper of record that prints personal and corporate bankruptcy notices, said pagination had reached a record last month – averaging 96 pages a day – up from 85 last year and 78 in 2007.

Begbies (also) reckons more than 35,000 firms could go under this year – equivalent to more than 95 a day. The figure would be 18% higher than during the previous peak in the 1990s crash. Nick Hood at Begbies said he would not be surprised if the number rose to 40,000 by the end of the year.

Hood told The Sunday Times: “The rate is accelerating – on a bad day we could see 20 businesses going under a day. Companies [you couldn’t imagine going bust] in the last recession are going to the wall this time round – a Chinese restaurant next to a university campus or a hairdressing salon.”

Some simple arithmetic suggests that for the UK with a population of approximately 60 million people the number of personal bankruptcies expected this year will be approximately 0.2% and for the US with a population of let's say 300 million people and with an expectation that 1.5 million may declare personal bankruptcy the comparable rate will be approximately 0.5%.

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