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Insolvencies `to continue during 2010`

Business insolvencies are expected to continue throughout 2010, according to the Confederation of British Industry (CBI).

The recession may be officially over, but that doesn`t mean the worst has passed for businesses - or individuals - in the UK. Despite the signs of recovery, it is "unsurprising" that businesses are continuing to fail, said CBI head of Company Affairs Matthew Fell, adding that "unemployment and business failure lag between one and two years behind economic recovery".

"We also know that we have got the twin threat to come of higher taxes both for firms and individuals - those are inevitable to restore the public finances," Mr Fell added.

"It`s important," said a spokesperson for the IVA Advisory Centre, "not to assume that the end of recession will mean the end of financial problems for companies and individuals throughout the country. There`s no reason to expect an immediate rise in incomes just because figures indicate that the recession finished at the end of 2009.

"When a business fails, this will have a profound effect on many people - not just its own employees, but potentially people who work for its suppliers, customers and business partners as well. Add to that the expected increases in both taxes and interest rates, and it`s clear that many people are facing a difficult year.

"Anyone who feels they`re losing control of their finances should contact a professional debt adviser before their problems get any worse."

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The IVA Advisory Centre are a licensed Insolvency Practice, offering free debt advice as well as IVAs and a comprehensive range of other debt solutions. If you are in debt and would like to explore your options, contact one of our advisers today.