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Insolvency firms benefit from recession

Published on 16 Dec 2009 under category: legal

Billions of pounds have been paid to insolvency practitioners during the recession, a new study has found.

A joint investigation by More4 News and the Sunday Times revealed that these firms have taken in around £3 billion in fees since the onset of the downturn.

The research revealed that the top ten insolvency firms in the UK made almost £20 billion during the last two years.

It was suggested that around £8 billion of this figure represents profit.

However, D Petersen, a commenter on the story, warned that the full story should be known before judgments are made, Accountancy Age reported.

He said: "But what should also be known is that they actually only charge roughly 10 per cent of their time because they are more concerned about selling and developing their services. So these claims by the Times are a little skewed to promote outrage and make a good story."

Several high-profile high street names have gone into insolvency this year, including Woolworths and Zavvi.

If you require advice on Insolvency and Bankruptcy please call us on +44 (0)20 7831 0101 and ask for Katherine Sillett.