Economy: Slowly more bankruptcies in Germany

Economy
Slowly more bankruptcies in Germany

After the expiry of the special corona regulations for over-indebted companies, there are signs of a slow rise in company bankruptcies in Germany.

In September, the number of applications for regular bankruptcy rose by 6 percent compared to August, the Federal Statistical Office reported on Tuesday in Wiesbaden on the basis of preliminary reports.

Compared to the same month last year, there is an increase of 25 percent. However, there was a sharp drop of 31 percent in September 2020 compared to September 2019, which was unaffected by Corona.

The feared wave of company bankruptcies did not materialize in July, for which the office presented final figures. With 1200 applications to the local courts, the number was 12.3 percent below July 2020 and also 27.0 percent below the same month of 2019. However, more money was on fire. The claims of the creditors amounted to 4.6 billion euros after 3.9 billion a year earlier.

In order to avert a wave of bankruptcies in the Corona crisis, the state temporarily suspended the obligation to file for bankruptcy in the event of over-indebtedness or insolvency. Since May 1st, the obligation to file for insolvency has been fully applicable again. There are exceptions for companies that have suffered damage from heavy rain or flooding in summer.

A change in the law has caused the number of consumer bankruptcies to rise sharply. With 7,164 cases, 78 percent more were registered in July this year than a year earlier. In the meantime, consumers have the chance to free themselves more quickly from their remaining debts, which, according to statisticians, has led to the increase.

dpa