The number of companies seeking bankruptcy rose by 12 per cent in the first quarter of this year compared to the previous three months but fell compared to early 2007.

From January to March, businesses filing for bankruptcy rose from 11,674 in the previous three months to 13,080 while petitions filed by creditors rose from 4,583 to 4, 851.

However, on an annual basis, there was a fall in the number of companies seeking bankruptcy, according to the Ministry of Justice.

The number of petitions for bankruptcy issued by company creditors between January and March fell 15 per cent compared to the first quarter of 2007, while the number of companies seeking to become bankrupt fell 13 per cent from 15,102 in the first three months of last year to 13,080.

The Ministry of Justice said no assumption should be made from these statistics about the number of companies that actually go into liquidation, as there is no guarantee that businesses who apply for insolvency actually go bust.

The most recent figures from the Insolvency Service showed that 2,125 companies liquidated their businesses in the first quarter of this year, 25.4 per cent more than in the first three months of last year. The number of companies going into administration also rose by 25 per cent.

Winding up petitions received by the Courts rose to 2,965, up from 2,888 in the previous quarter, but down from 3,300 in the first quarter of last year.

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