| answer text |
<p>Insolvency trade body, R3, commissioned research to try to measure the impact of
the civil justice reforms on insolvency litigation. This research estimates that contingency
fee arrangement backed insolvency litigation realises £150m-160m per annum.</p><p>When
the exemption for insolvency proceedings was introduced in 2013 the impact assessment
made the assumption that by April 2015 alternative funding arrangements would have
been developed for insolvency cases. On that basis it was assumed there would be no
major impact on the volume of insolvency cases which were pursued, or on the value
of assets recovered in the long-run, although the risk of recoveries falling was acknowledged.</p>
|
 |
