So far no bankruptcy wave in Germany

Created: 01/11/2022Updated: 01/11/2022, 9:41 AM

However, the number of companies that are in trouble as a result of the pandemic could increase.

© Frank Rumpenhorst / dpa

The fears were great, but government aid billions prevented a wave of corporate bankruptcies in Germany.

But many entrepreneurs continue to fear for their professional existence.

Wiesbaden - Even in the second year of the pandemic, there was no wave of bankruptcies according to previous figures.

From January through October 2021, local courts reported 11,738 corporate bankruptcies.

According to the Federal Statistical Office, that was 13.5 percent less than in the same period of the previous year.

However, experts expect the numbers to rise again this year.

Economic concerns in many industries remain high in view of the rampant coronavirus and ongoing restrictions.

In October last year, according to the Federal Office, the number of bankruptcies was, at 1056, 2.7 percent lower than in October 2020. The level of October 2019, i.e. before the Corona crisis, was undercut even more - by 33.7 Percent, as the Wiesbaden authority announced.

The expected claims of the creditors added up to almost one billion euros last October.

In October 2020 it was still 2.1 billion euros.

In order to avert a wave of bankruptcies as a result of the pandemic, the state temporarily suspended the obligation to file for bankruptcy in the event of over-indebtedness or insolvency. Since May 1, 2021, the obligation to file for insolvency has been fully applicable again. Therefore, an increase in bankruptcies was expected. There are exceptions until January 31, 2022 for companies that suffered damage from heavy rain or flooding last summer.

However, the number of companies that are in trouble as a result of the pandemic could increase.

According to a survey by the Ifo Institute from December, almost every seventh company (14 percent) sees its existence threatened.

"The travel agencies and tour operators still feel particularly at risk with 73.2 percent and companies from the event industry with 67.4 percent," summarized Klaus Wohlrabe, head of the Ifo surveys.

The situation in the hospitality industry also remains critical: According to the survey, more than half of the innkeepers (52.5 percent) see their professional existence at risk.

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An increase in the number of insolvencies is also indicated in the preliminary figures from the Wiesbaden Federal Office: The number of standard insolvency proceedings applied for rose by 18 percent from November to December 2021.

The month before, it had climbed 43.8 percent.

Compared to the same month last year, the number of regular bankruptcies requested was, according to the information, in December 2021 higher by 24.8 percent.

For the full year 2021, the credit agency Creditreform expects 14,300 company bankruptcies in Germany - a record low.

dpa