More chose to liquidate

2011-09-27 00:00

ALTHOUGH the number of liquidations increased by 24,3% year on year in August 2011 to 302 cases, the general declining trend in 2011 remains entrenched.

Statistics South Africa said yesterday that the increase was caused by a spike in the number of voluntary liquidations. “The biggest increase in the number of voluntary liquidations during this period was recorded in the financing, insurance, real estate and business services industry [52 more liquidations], followed by the community, social and personal services industry [24 more liquidations].”

The number of liquidations in the first eight months of 2011 decreased by 17,1% year on year.

Senior Manager: Portfolio Business at credit insurer Coface South Africa Paul Jooste told The Witness that the company is seeing a reduced volume and value of bad debt handovers, with debtors paying overdue amounts more timeously.

“It remains important to follow up on overdue accounts as quickly as possible as payment of the debt reduces substantially if [it is] 240 days past [the] due date,” Jooste said.

Jooste added that although private individuals and corporates are showing signs of financial wellbeing, a recent statistic released by the National Debt Mediation Association showing that the number of consumers with impaired credit records has risen by 174 000 to 8,9 million in the second quarter of 2011 is of concern.

Liquidation refers to the winding-up of the affairs of a company or CC when liabilities exceed assets — and it can be resolved by voluntary action or by an order of the court.

Insolvency refers to an individual or partnership which is unable to pay its debt and is placed under final sequestration. Civil judgements are decisions taken in a civil matter or a dispute between two people or parties while civil summonses are notices to appear before a court of law where a dispute between two parties or people has to be heard.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.

Inside News24

 
/Sport

Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.