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R3 comments on latest insolvency figures

Personal insolvency
“The continued fall in personal insolvencies can only be a good thing. Our research shows that, against the backdrop of increased living costs and falling income, four in five consumers have changed how they shop in a bid to save money. A further drop in personal insolvency may signal that the reining in of domestic belts is starting to pay off.

“However, this data only captures those that are in formal insolvency procedures so we are unable to gauge how many households are struggling. What we do know is that on average, people tend start to struggle 20 days after payday, with many ‘bridging the gap’ by taking on more debt, which can easily snowball. It is important that those who are struggling set a budget – it is probably the most powerful financial weapon in the fight against debt and its value should not be underestimated.”
R3 President, Frances Coulson

Corporate insolvency
“The quarter-on quarter increase in corporate insolvencies may seem surprising given that we saw the economy grow during this quarter; however our research shows that the first stages of recovery are the most difficult time for businesses. It takes time before a return to growth translates into tangible relief for business owners, unfortunately creditors tend to become more aggressive in their pursuit of debtors once there signs of growth. In fact, our members have seen more Time to Pay applications rejected; and our latest Business Distress Index shows that businesses believe that banks are less supportive than in previous quarters.


“For the businesses that have clawed their way through the recession, depleting their reserves in their process, continued creditor support is key to their survival.”
R3 President, Frances Coulson

R3 Press Office

Notes to editors:

  • R3 is the trade body for Insolvency Professionals and represents the UK’s Insolvency Practitioners.

  • R3 comments on a wide variety of personal and corporate insolvency issues. Contact the press office, or see for further information.

  • R3 promotes best practice for professionals working with financially troubled individuals and businesses; all R3 members are regulated by recognised professional bodies
  • R3 stands for 'Rescue, Recovery, and Renewal' and is also known as the Association of Business Recovery Professionals.