The number of firms going bust is set to reach a 14-year high as thousands of businesses continue to go under every month.
New data shows 6,208 businesses went bust in the third-quarter.
That's the second most since 2009, with 6,319 insolvencies in this years second-quarter.
Higher interest rates and less demand is being described as the "perfect storm of economic issues" by the former president of R3 Christina Fitzgerald.
She added: “It remains to be seen whether this year’s Christmas trading period will be the shot in the arm or the final blow for those that are struggling.”
Retailers and leisure firms suffered the second and third-highest volume of insolvencies out of all sectors over the past year.
Olga Galazoula, partner and global head of restructuring at Ashurst, told The Times: “It is difficult to look at these [insolvency] figures and not see a risk of a recession looming.”
The country has avoided a recession this year thus far, due to government support and households using savings amassed during lockdown to finance spending.