According to insolvency trade body R3 (the Association of Business Recovery Professionals), although the recession is over, we will probably see a significant rise in the number of bankruptcies, IVAs (Individual Voluntary Arrangements) and DROs (Debt Relief Orders) in the months/years ahead.

Based on the aftermath of previous recessions, R3 has concluded that the period just after a recession is a dangerous time for companies and individuals struggling with their debts.

According to the trade body, ‘figures from the 1980s and 1990s recessions show that the peak in both personal and corporate insolvencies occurred after the return to growth, in some cases, a considerable length of time afterwards. In the early 1990s recession, for example, the peak in corporate liquidations was recorded five quarters after the return to growth while the peak in personal insolvencies [bankruptcies, IVAs and DROs] came six quarters (18 months) after the return to growth.