Significantly below the previous year's figure: the number of corporate insolvencies is increasing

Significantly below the previous year's figure
The number of corporate bankruptcies is increasing

According to the Federal Statistical Office, significantly more companies filed for bankruptcy in December last year than in November. The double-digit percentage increase was not due to the Corona crisis. The same period last year provides indications for this.

According to preliminary figures from the Federal Statistical Office, the number of corporate bankruptcies rose sharply in December. In the last month of last year, the bankruptcies increased by 18 percent compared to the previous month, as the authority announced on the basis of preliminary figures. In November, the number of regular bankruptcies had already increased by five percent.

Due to the corona crisis, the federal government suspended the obligation to file for insolvency for over-indebted companies until December 31, 2020; the scheme was extended until the end of January. Since October 2020, however, the obligation to file for insolvency has again applied to insolvent companies.

According to statistics, 1084 corporate insolvencies were reported in October, almost a third less than in October 2019. The economic hardship of many companies due to the Corona crisis is therefore not reflected in an increase in reported corporate insolvencies, explained the Federal Statistical Office. According to preliminary information, the number of bankruptcies in December was still nine percent below the previous year's figure.