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According to preliminary figures from the Federal Statistical Office, the number of corporate bankruptcies rose significantly in December.
The bankruptcy registrations increased by 18 percent compared to November, as the authority announced on Monday based on preliminary figures.
In the previous month, the number of regular bankruptcies had already increased by five percent compared to October.
Compared to December 2019, the number of bankruptcies in December 2020 was still nine percent below the previous year's value.
Due to the corona crisis, the federal government suspended the obligation to file for insolvency for over-indebted companies until December 31, 2020;
this rule was recently extended to the end of January.
For insolvent companies, however, the obligation to file for insolvency has been in effect again since October 2020.
Trend reversal for the worse?
In October 1084 corporate bankruptcies were reported, almost a third less than a year earlier.
The economic hardship of many companies due to the corona crisis has therefore not yet been reflected in an increase in reported corporate insolvencies, said the Federal Statistical Office.
According to the office, the obligation to file an application for insolvent companies will only be reflected in the figures later: partly due to the processing time of the courts.
According to the Halle Institute for Economic Research (IWH), it usually takes two months between the company's filing for bankruptcy and the court's opening decision.
However, the preliminary December data from the Federal Statistical Office already indicate a trend reversal.
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