2. N. Ireland Personal & Corporate Insolvencies Summary
In Q3 2013, 717 individuals were declared insolvent in Northern Ireland (NI). This represented a decrease of 19.8%
q/q and a fall of 15.0% on the same quarter in 2012. Over the last four quarters to Q3 2013 there were 3,203 personal
insolvencies within NI. This represents a decrease of 0.5% relative to the same period one year previous. In addition,
the latest four quarter period represented a slight decrease from NI’s recent record high in personal insolvencies.
Over the year to Q3 2013 (4 quarter period), the number of personal insolvencies in NI was more than double (+114%)
that which prevailed prior to the start of the credit crunch (Q3 2007). This compares with an increase of 4% for
Scotland with the number of insolvencies in England & Wales some 8% below its pre‐credit crunch level. Meanwhile,
NI’s personal insolvencies have increased more than five‐fold since 1998.
Despite the sharper rise in NI’s insolvency figures, the incidence of personal insolvency remains broadly the same in
both NI and in England & Wales. However, the latest figures reveal that NI’s individual insolvencies per capita (> 18
years) has risen above that of England & Wales for the first time. NI’s personal insolvency rate of 23.6 per 10,000 of
adult population compares with 22.8 for England & Wales.
Looking ahead, the debt overhang (linked primarily to property) & more intense squeeze on NI’s household finances
could see a further widening in NI’s insolvency rate gap with England & Wales. Since 2007 NI’s personal insolvency
rate has more than doubled whereas the equivalent rate for England & Wales is lower than it was in 2007.
In the 24 quarters (6 years) since the credit crunch began in Q3 2007 there have been 14,713 personal insolvencies and
1,869 corporate insolvencies in NI. This compares with 6,888 personal insolvencies and 747 corporate insolvencies in
the 23 quarter period* preceding the start of the credit crunch (corporate insolvencies data only begins Q1 2002).
In Q3 2013, there were 69 company liquidations in NI. This represented a 23.2% q/q decrease relative to Q2 2013 &
was 27.4% below the Q3 2012 figure. Looking over the year to Q3 2013 (4 quarter period) there were 315 corporate
insolvencies which represents a significant fall on 2012’s record high of 410 insolvencies. Whilst NI’s corporate
insolvencies have increased by almost 6 times the percentage increase in England & Wales during the credit crunch,
NI’s corporate insolvency rate (0.5%) still compares favourably with Scotland (0.6%) and England & Wales (0.6%).
5. 717 individuals became insolvent in Q3 2013 bringing the
4 quarter total to 3,203. Down from the recent record high
NI Individual Insolvencies
Rolling Annual Sum
Quarterly Outturn
1,000
900
3,500
Quarterly Outturn Left Hand Axis
4 Quarter Total Right Hand Axis
3,000
800
700
2,500
600
2,000
500
400
1,500
300
1,000
200
500
100
Source: DETI Insolvency Service
0
2004Q3
0
2006Q1
2007Q3
2009Q1
2010Q3
2012Q1
2013Q3
6. Bankruptcy Orders fall by almost a 1/3rd q/q in Q3
whilst IVAs post a fall of almost 8%
NI Personal Insolvencies - Quarterly
500
Bankruptcy Orders
IVAs
Debt Relief Orders
400
300
200
100
Source: DETI Insolvency Service
0
2003Q3
2005Q3
2007Q3
2009Q3
2011Q3
2013Q3
Slide 6
7. IVAs were the most common form of insolvency in
Q3 2013 accounting for 45% of insolvencies
NI Personal Insolvencies
1000
900
Bankruptcy Orders
IVAs
Debt Relief Orders
800
700
600
500
400
300
200
100
Source: DETI Insolvency Service
0
2003Q3
2005Q3
2007Q3
2009Q3
2011Q3
2013Q3
Slide 7
8. NI’s insolvencies have been rising (from a lower base) at a
faster rate during the downturn than England & Wales
Individual Insolvencies
Y/Y
100%
Y/Y Growth
NI
England & Wales
75%
50%
25%
0%
-25%
Source: Insolvency Service
-50%
2005Q3
2007Q3
2009Q3
2011Q3
2013Q3
9. NI’s personal insolvencies have risen by 114% since credit
crunch began. In England & Wales insolvencies are now lower
Index 4 Qtrs to Q3
2007 = 100
Growth in Personal Insolvencies
since the 'Credit Crunch' began (Q3 2007)
225
England & Wales
NI
Scotland
+114%
200
175
150
125
+4%
100
-8%
75
Source: Insolvency Service & UB Calculations
50
2007Q3
2008Q3
2009Q3
2010Q3
2011Q3
2012Q3
2013Q3
10. NI’s personal insolvencies in Q3 2013 were over 6 times
greater than the corresponding quarter back in 1998
Growth in Personal Insolvencies since 1998
Index 1998=100
700
Index 1998 = 100
N.Ireland
Eng & Wales
600
520% rise
since 1998
500
400
300
316% rise
since 1998
200
100
Source: DETI Insolvency Service & UB Calculations
0
1998Q3
2001Q3
2004Q3
2007Q3
2010Q3
2013Q3
11. N.Ireland’s personal insolvency rate is now above that
of England & Wales for the 1st time
Insolvencies per capita
Personal Insolvencies per 10,000 adult population (18+)
40
NI
England & Wales
30
23.6
22.8
20
10
Source: Insolvency Service & UB calculations, * 4 quarters to Q3 2013
20
12
20
13
*
20
11
20
10
20
09
20
08
20
07
20
06
20
05
20
04
20
03
20
02
20
01
0
12. The rise in personal insolvencies is just one sign of
consumer stress
NI Consumer Stress
Rolling 4 Quarter Total
5,000
Personal Insolvencies
Actions for Mortgage Possession
4,500
4,000
Mortgage Possession Orders
3,738
Credit Crunch
begins Aug 07
3,500
3,000
3,203
2,500
2,000
2,136
1,500
1,000
**Not all writs & originating summonses (Actions
for Mortgage Possession) lead to eviction or
re/possession**
500
Source: DETI Insolvency Service & NI Courts Service
0
2004Q3
2006Q1
2007Q3
2009Q1
2010Q3
2012Q1
2013Q3
14. 69 local firms became insolvent in Q3 2013, a 34%
decrease on the Q2 figure & 27% below Q3 2012
NI Corporate Insolvencies
Quarterly Outturn
Rolling Annual Sum
140
450
Quarterly Left Hand Axis
4Qtr Total Right Hand Axis
400
120
105
100
350
300
80
69
250
200
60
150
40
100
20
Source: DETI Insolvency Service
0
2006Q3
50
0
2007Q3
2008Q3
2009Q3
2010Q3
2011Q3
2012Q3
2013Q3
16. N.Ireland’s annual growth rate in corporate insolvencies
falls by 27% in Q3 2013 versus -2% for England & Wales
Corporate Insolvencies
Y/Y
Y/Y Growth
100%
NI
England & Wales
75%
50%
25%
0%
-25%
-50%
Source: Insolvency Service
-75%
2005Q3
2007Q3
2009Q3
2011Q3
2013Q3
17. NI corporate insolvencies have risen by almost 6 times
the rate in England & Wales since credit crunch began
Index 4 Qtrs to Q3
2007 = 100
Growth in Corporate Insolvencies
since the 'Credit Crunch' began (Q3 2007)
300
England & Wales
NI
Scotland
250
+116%
200
150
+20%
+19%
100
Source: Insolvency Service & UB Calculations
50
2007Q3
2008Q3
2009Q3
2010Q3
2011Q3
2012Q3
2013Q3
18. But NI’s corporate insolvency ratio remains below that
of England & Wales though it has been converging
Corporate Insolvency Ratio
1.2%
Insolvencies as a % of business population
Source: Insolvency Service & UB Calculations, **based on
VAT & PAYE registered businesses, ***based on active
business base, * refers to Q3 2013
NI**
England & Wales***
1.0%
0.8%
0.7%
0.6%
0.6%
0.6%
0.5%
0.4%
0.2%
0.0%
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012 2013*
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