Consumers are also more often bankrupt: corporate bankruptcies rise significantly in September

Consumers also go bankrupt more often
Corporate bankruptcies rise significantly in September

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Experts have been speculating on this for a long time, but now it seems to be happening: after government aid in the Corona crisis, many company bankruptcies are delayed. Therefore, their number will increase significantly in 2023. By almost 20 percent in September alone.

The trend in company bankruptcies in Germany continues to point upwards. The number of regular insolvencies filed in September was almost a fifth (19.5 percent) higher than in the same month last year, as the Federal Statistical Office announced. In August the increase within a year was 13.8 percent.

The procedures are only included in the statistics after the insolvency court’s first decision, as the Wiesbaden statisticians explained. In many cases, the actual date of the insolvency application was almost three months earlier. The Federal Office now has final figures for July. Accordingly, the district courts reported 1,586 filed corporate bankruptcies. That was 37.4 percent more than a year before. The courts estimated the creditors’ claims at around 3.1 billion euros. In July 2022 it was around 0.8 billion euros. The number of consumer bankruptcies climbed by 6.9 percent to 5,668.

In recent years, government aid and partially suspended obligations to file for insolvency have kept the number of company bankruptcies in Germany at a low level despite the Corona and energy crises. The economic research institute IWH from Halle recently stated that the number of company bankruptcies in Germany is likely to increase noticeably at the end of 2023. There are signals of “a significant increase in the number of insolvencies in the fourth quarter – especially in the construction industry as well as in real estate and housing,” explained the economists and government advisors from Halle regarding their monthly insolvency trend for September. The economic downturn and rising loan interest rates have also caused the number of company bankruptcies to continue to rise.

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