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Enterprise Act 2002: Insolvency

Volume 462: debated on Wednesday 11 July 2007

To ask the Secretary of State for Business, Enterprise and Regulatory Reform what proportion of individual voluntary arrangements were made (a) pre-bankruptcy and (b) post-bankruptcy in each year since the introduction of the Enterprise Act 2002. (148966)

The personal insolvency provisions of the Enterprise Act 2002 came into force on 1 April 2004.

Post-bankruptcy IVAs as a percentage of all IVAs

Pre-bankruptcy IVAs as a percentage of all IVAs

2004-05

1.16

98.84

2005-06

0.46

99.54

2006-07

0.15

99.85

To ask the Secretary of State for Business, Enterprise and Regulatory Reform what assessment his Department has made of the effectiveness of the insolvency provisions of the Enterprise Act 2002; and if he will make a statement. (148967)

The Insolvency Service is undertaking a comprehensive evaluation of the Enterprise Act 2002 insolvency provisions, overseen by an Evaluation Group of independent stakeholders.

The evaluation includes both quantitative and qualitative data collected from various sources over a four-year period, including five pieces of independent academic research and internal analyses of Insolvency Service data. In order to better understand the evaluation data, benchmark information was obtained regarding the operation and effect of the pre-existing legislation.

Full details of the evaluation are set out in the minutes of the Evaluation Group, the evaluation planning papers, interim evaluation reports, academic research reports and internal analyses, available on the Insolvency Service website:

www.insolvency.gov.uk

The final evaluation report on the corporate insolvency provisions of the Enterprise Act 2002 is due to be published in summer 2007, and the final evaluation report on the individual insolvency provisions of the Enterprise Act 2002 is due to be published in autumn 2007.

To ask the Secretary of State for Business, Enterprise and Regulatory Reform how many bankruptcy orders have been made in each year since the implementation of the Enterprise Act 2002. (148968)

The following table shows the number of bankruptcy orders in England and Wales from April 2004, when the individual insolvency provisions of the Enterprise Act 2002 came into force.

Bankruptcy orders in England and Wales, seasonally adjusted

Bankruptcy orders

2004-05

38,130

2005-06

52,327

2006-07

64,488

To ask the Secretary of State for Business, Enterprise and Regulatory Reform how many (a) fast-track voluntary arrangements and (b) post-bankruptcy individual voluntary arrangements were made in each year since the introduction of the Enterprise Act 2002. (147076)

The individual insolvency provisions of the Enterprise Act 2002 came into force on 1 April 2004.

Fast track voluntary arrangements

Total number of post-bankruptcy IVAs

2004-05

8

135

2005-06

9

114

2006-07

3

71

To ask the Secretary of State for Business, Enterprise and Regulatory Reform whether his Department has assessed the volume of (a) individual voluntary arrangements and (b) fast-track voluntary arrangements resulting from the implementation of the Enterprise Act 2002’s insolvency provisions prior to its enactment. (148746)

There are no statistics for the number of FTVAs for the period before the Enterprise Act was enacted as they were introduced by that Act. Insolvency statistics are produced quarterly. IVA numbers for the five calendar years prior to the enactment of the individual insolvency provisions of the Enterprise Act and for the period subsequent to enactment are as follows:

Number of IVAs

2000

7,978

2001

6,298

2002

6,295

2003

7,583

2004

10,752

2005

20,293

2006

44,332

FTVAs were introduced on 1 April 2004. In the year 2004-05 there were five approved FTVAs, for 2005-06 there were 12 and for 2006-07 there were three.

To ask the Secretary of State for Business, Enterprise and Regulatory Reform what the preliminary conclusions of the Insolvency Service’s interim evaluation of the Enterprise Act 2002 were in respect of (a) post-bankruptcy individual voluntary arrangements and (b) fast-track voluntary arrangements. (148747)

The interim evaluation reports on the individual insolvency provisions of the Enterprise Act 2002 can be accessed on the Insolvency Service website on

www.insolvency.gov.uk

Neither of the interim evaluation reports reach any conclusions about post-bankruptcy IVAs or FTVAs as their main purpose is to inform stakeholders of ongoing work. The evaluation of the individual insolvency provisions of the Enterprise Act 2002 will be published later this year.

To ask the Secretary of State for Business, Enterprise and Regulatory Reform when he expects to publish the results of the Insolvency Service’s evaluation of the Enterprise Act 2002; and if he will make a statement. (148748)

The Insolvency Service is undertaking a comprehensive evaluation of the Enterprise Act 2002 insolvency provisions, overseen by an Evaluation Group of independent stakeholders.

The final evaluation report on the individual insolvency provisions of the Enterprise Act 2002 is due to be published later this year.

Full details of the evaluation are set out in the minutes of the Evaluation Group, the evaluation planning papers, interim evaluation reports, academic research reports and internal analyses, available on The Insolvency Service website:

www.insolvency.gov.uk