The number of companies applying to be wound up fell by 3% in 2007, according to figures released by the Ministry of Justice.

A total of 11,791 ceased trading due to insolvency or other problems in England and Wales last year but many analysts expect that to rise as the credit crunch bites in 2008.

The number of creditors applying for winding up orders against debtors also fell by 3% in 2007, to 20,156.

The figures also revealed a disparity in geographical location, with the number of applications in the south-west down by 23%, compared to a 13% increase in the north-west of England.