16 Nov 2015 / Back to latest updates

The economic recovery is finally happening!

The Debt Collection Centre (#tdcc) can only reiterate that the economy shows signs of improvement following the thoughts of Phillip Sykes, president of R3, the insolvency trade body, in respect of the quarterly insolvency statistics (for July-September 2015) published by the Insolvency Service on 29 October 2015;

Personal insolvencies

“Personal insolvencies have generally been falling since the recession: although insolvencies are up this quarter from last quarter, they are well below where they were this time last year. Economic recovery is finally making a big dent in insolvency numbers which ballooned pre-2009.”

“IVA numbers have fallen so far and fast over the last year, some ‘bounce’ up is not unexpected.”

“It’s a positive surprise to see that the number of bankruptcies hasn’t risen in the last quarter. From this month, you have to owe at least £5,000 to one creditor before you can be made bankrupt, up from £750 beforehand’.

Corporate insolvencies

“The numbers of corporate insolvencies continue their long and slow decline since their peak in the recession. Although this week’s growth figures show businesses aren’t exactly flying, not too many are really struggling either.”

“The unique conditions of this recovery – low interest rates and creditor forbearance – meant we never saw the traditional post-recession spike in corporate insolvencies. The circumstances of this recovery have also given businesses the space and time needed to restructure themselves outside of the formal insolvency process. The current low levels of inflation, lack of pressure for wage increases and the strong pound helping importers, may also be assisting businesses at the moment.”

And so it seems that after many years of hardship we are seeing the long predicted recovery in the economy.