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Insolvency: Number of company bankruptcies rose sharply in January

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Insolvency: Number of company bankruptcies rose sharply in January

The trend towards more corporate and consumer bankruptcies continued at the beginning of the year. According to preliminary information from the Federal Statistical Office, the number of standard insolvencies applied for increased by 26.2 percent in January 2024 compared to the same month last year.

Final figures are usually available after three months, as the applications are only included in the statistics after a court decision. In November, 1,513 companies filed for bankruptcy, an increase of 15.3 percent compared to the previous year.

According to the Federal Statistical Office, insolvencies have been increasing at a double-digit rate since June 2023. However, the numbers were still slightly below the level of the pre-Corona period from June 2019 to January 2020.

From January to November 2023, the number of company bankruptcies rose by around 23 percent to over 16,000 cases. Compared to the period before Corona in 2019, the number was 6.5 percent lower.

Experts speak of the normalization of insolvency processes

The SME expert at the German Chamber of Commerce and Industry (DIHK), Marc Evers, said: “The poor economic situation is increasingly reflected in the development of insolvencies. The negative trend in corporate insolvencies is getting worse.”

Consumer insolvencies fell by 1.0 percent to 5,811 cases in November compared to the previous year. From January to October, 61,460 consumers filed for personal bankruptcy, a slight increase of 1.1 percent compared to the same period in 2022.

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Government aid and partially suspended obligations to file for insolvency had kept the number of company bankruptcies at a low level despite Corona and the energy crisis. After the aid expired, experts expected an increase. The Association of Insolvency Administrators and Administrators in Germany sees the increase primarily as a normalization of insolvency events.

The trend towards more corporate and consumer bankruptcies continued at the beginning of the year. According to preliminary information from the Federal Statistical Office, the number of standard insolvencies applied for increased by 26.2 percent in January 2024 compared to the same month last year.

Final figures are usually available after three months, as the applications are only included in the statistics after a court decision. In November, 1,513 companies filed for bankruptcy, an increase of 15.3 percent compared to the previous year.

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