Federal Statistical Office: Slightly more corporate insolvencies in November

The number of corporate insolvencies rose slightly in November.

Federal Statistical Office: Slightly more corporate insolvencies in November

The number of corporate insolvencies rose slightly in November. According to preliminary information from the Federal Statistical Office on Monday, 1.2 percent more standard insolvencies were applied for in November than in October. At that time, the number of company bankruptcies had already increased by 18.4 percent compared to September. The statisticians emphasized that the insolvency applications are often included in the statistics with a delay of several months. Experts expect more bankruptcies due to the economic crisis.

From January to September, the German district courts reported 10,643 bankruptcies. That was 0.4 percent less than a year earlier. The courts estimated the probable claims of the creditors at almost 10.8 billion euros. In the same period of the previous year, they were 45.5 billion euros, as more large companies went bankrupt. Most company bankruptcies were in construction and trade.

In the first nine months of the year, consumer bankruptcies fell sharply by almost a fifth (minus 18.6 percent). However, a change in the law in October 2020 is reflected here, which made it possible to be released from the remaining debt after three instead of six years. A number of those affected had therefore waited with their bankruptcy application in order to benefit from the new regulation. The catch-up effect seems to have ended in the meantime, the office said.

In order to avoid a wave of bankruptcies among companies due to the corona pandemic, the state had temporarily suspended the obligation to file for bankruptcy if over-indebtedness occurred. Since May 2021, the obligation to apply has been in force again. There were also exceptions to the obligation to apply as a result of the flooding in western Germany in July 2021. The obligation to file for insolvency was suspended here until January 2022.

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