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Bankruptcy: Bexley

Volume 488: debated on Wednesday 25 February 2009

To ask the Minister of State, Department for Business, Enterprise and Regulatory Reform how many businesses in (a) Bexleyheath and Crayford constituency and (b) the London Borough of Bexley have been declared bankrupt in each of the last 12 months. (250743)

Self-employed traders may be declared bankrupt (or enter into an individual voluntary arrangement (IVA)), however, registered companies are the subject of ‘liquidation’ (compulsory liquidation or creditors voluntary liquidation (CVL)).

It is not currently possible, from information held centrally in electronic format, to count the number of insolvent companies in Bexleyheath and Crayford constituency or the London borough of Bexley.

However Table 1 shows the number of self employed bankrupts in each month of 2007 (the latest for which information is currently available for Bexleyheath and Crayford constituency and the London borough of Bexley), derived from postcodes provided by bankrupt individuals1, 2.

1 Classifying bankrupts into administrative geographies is done using the postcode that the bankrupt individual provides. The use of this in assigning an individual to a borough is thus only as reliable as the postcode information provided.

2 In particular, inaccurate or missing postcodes mean that the numbers in the following table will be subject to an element of missing data. Nationally, this proportion has been decreasing from about 12 per cent. in 2000 to less than 4 per cent. in 2007.

Table 1. Self employed bankrupts in 2007

Bexleyheath and Crayford constituency

London borough of Bexley

January

2

3

February

1

2

March

2

4

April

0

0

May

0

0

June

0

2

July

1

1

August

0

1

September

0

2

October

2

3

November

3

5

December

1

1

Similar information is not available for individual voluntary arrangements entered into by the self-employed.