Germany reported a 22.9% rise in the number of regular insolvencies filed in October 2024, compared to the same month the previous year, according to preliminary data from the Federal Statistical Office (Destatis).
This indicates a continuation of the trend largely observed since June 2023, where insolvencies have risen by double digits on a monthly basis. June 2024 was the only exception to this trend, with insolvencies rising by 6.3% that month.
Destatis noted that the statistics reflect insolvencies after the initial court decision, meaning the actual filings may date back approximately three months earlier.
Finalised data for August
According to finalised data for August 2024, there was a 13.4% increase in corporate insolvencies in Germany compared to August 2023, with 1,764 cases reported.
The estimated creditors’ claims from these insolvencies amounted to €2.4 billion, significantly higher than the €1.8 billion in claims reported for the same month last year, Destatis noted.
On a sector-by-sector basis, the transport and warehousing sector had the highest insolvency rate, with 9.2 cases per 10,000 companies.
This was followed by the hospitality industry (7.8 insolvencies per 10,000 companies), other economic services like temporary employment agencies (7.3 insolvencies per 10,000 companies), and the construction sector (7.2 insolvencies per 10,000 companies).
Along with corporate insolvencies, consumer bankruptcies declined by 2.9% in August 2024 compared to the previous year, the finalised data showed, with 5,672 cases reported.
Insolvency proceedings
‘Around 30% of insolvency proceedings in Germany are standard insolvency proceedings, which primarily include all proceedings involving companies (around 55% of all standard insolvency proceedings),’ Destatis noted.
‘In addition, standard insolvency proceedings apply to persons who are economically active. These include, among others, the personally liable partners of a general partnership (oHG), majority shareholders of a corporation and former self-employed persons whose financial circumstances are classified as not manageable.’ Read more here.
