Latest figures have revealed that there was an increase in Northern Ireland company insolvencies according to latest Insolvency Service figures. The latest quarterly figures show that there were 88 new company insolvencies in Northern Ireland, up 22 on the previous three-month period, but a significant fall on the same quarter of 2018.

Of the latest failures, 54 were by way of compulsory liquidations, 21 by new creditors’ voluntary liquidations, eight by way of a CVA (company voluntary arrangement) while five companies went into administration.

Personal insolvency figures showed that 758 people got into financial difficulty over the period, with 169 being declared bankrupt (21 fewer than in the same quarter last year), 101 signing debt relief orders and 488 entering IVAs. Bankruptcies remain low compared with 2009 to 2014 levels.

R3 President Duncan Swift said “Bankruptcies tend to be a reasonably good indicator of serious and unsustainable indebtedness”.

Alec Pillmoor, Personal Insolvency Partner at RSM, said “Debt charities have also raised concerns about the rise in sub-prime credit cards being targeted at those with low credit scores. These can have relatively high APRs (annual percentage rates) when compared to other short-term credit alternatives and serve to further the plight of those with limited understanding of how easy it is to rack up unsustainable debt.”

“Given the current weakness of the pound and Brexit-related economic uncertainty, many consumers may wish to give closer consideration to their holiday spending this summer to avoid getting into trouble further down the line.”