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MIL OSI Translation. Region: Germany / Deutschland –

Source: Destatis Federal Statistical Office

Preliminary figures for standard insolvency proceedings opened in September 2020: -34.5%

Press release No. 394 from October 8, 2020

WIESBADEN – In July 2020, the German local courts reported 1,369 corporate insolvencies. According to the Federal Statistical Office (Destatis), that was 16.7% less than in July 2019. The economic hardship of many companies due to the Corona crisis has therefore not yet been reflected in an increase in the number of reported corporate insolvencies. One reason for this is that the obligation to file for insolvency for companies was suspended on March 1, 2020.

The largest number of corporate insolvencies in July 2020 were in the trade sector (including maintenance and repair of motor vehicles) with 228 cases (July 2019: 253). Construction companies filed 204 insolvency applications (July 2019: 295). 182 (July 2019: 184) insolvency filings were reported in professional, scientific and technical services and 154 (July 2019: 185) in hospitality.

According to the local courts, the expected claims of creditors from corporate insolvencies rose to 3.9 billion euros in July 2020. In July 2019 they were still 2.8 billion euros. This increase in receivables with a simultaneous decrease in the number of corporate bankruptcies is due to the fact that more economically important companies filed for bankruptcy in July 2020 than in July 2019.

30% fewer consumer bankruptcies in July 2020

In addition to corporate bankruptcies, 5,645 other debtors filed for bankruptcy in July 2020. That was 28.4% less than in the same month last year. These included 4,024 insolvency applications from consumers (-30.1% compared to July 2019) and 1,268 insolvency applications from formerly self-employed people.

The large decline in insolvency applications from consumers is probably due to one Bill of the federal government to further shorten residual debt discharge procedures to three years.

The new regulation is to apply to consumer insolvency proceedings applied for from October 1, 2020 and enables consumers to make a faster economic fresh start following insolvency proceedings. It can be assumed that this is why many overindebted private individuals will only apply for insolvency after the new 2020 Act comes into force.

September 2020: Trend continues – Significantly fewer regular insolvency proceedings opened than in the previous year

As in July and August, the provisional information on the regular insolvencies that have been opened also shows a significant decrease in proceedings for September 2020. Compared to September 2019, the number of standard insolvency proceedings opened fell by 34.5%. The Federal Statistical Office has been publishing these provisional information since the reporting month of March 2020 in order to map the economic consequences of the corona pandemic at an early stage.

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Notes on standard insolvency proceedings

From March 1 to September 30, 2020, companies whose bankruptcy (insolvency or over-indebtedness) was based on the effects of the corona pandemic and had the prospect of eliminating an existing insolvency were exempted from the obligation to file for insolvency. In the case of insolvency applications submitted by the creditors, it was also assumed that the reason for opening was already available on March 1, 2020, i.e. before the corona pandemic. Since October 1st, an insolvency application for insolvency has been mandatory again; in the case of over-indebtedness, the exemption initially continues to apply until the end of the year. The effects of these changes will only show up in the statistics from the reporting month October.

Of the insolvency proceedings in Germany, 30% are standard insolvency proceedings, which primarily include all corporate proceedings (around 55%). It also includes people who are economically active. These include, among other things, the personally liable partners of a general partnership (oHG), majority shareholders of a corporation and formerly self-employed people whose financial circumstances are classified as unmanageable.

Methodological notes:

The provisional monthly information, here for September 2020, is based on current bankruptcy notices from all local courts in Germany. The Federal Statistical Office publishes the development of the standard insolvency proceedings opened in Germany during the Corona crisis monthly on the Corona special page of the Federal Statistical Office.

Corporate insolvencies applied for by industry in Germany July 2020
Procedure overall
A total of
1 369
Agriculture, forestry, fishing
Mining and quarrying of stones and earth

power supply
Water supply; Sewage and waste disposal and pollution removal

construction industry
Trade; Maintenance and repair of motor vehicles
Transportation and storage
information and communication
Provision of financial and insurance services
Real estate and housing
Provision of professional, scientific and technical services
Provision of other economic services
Education and instruction
Health and social services
Arts, entertainment and recreation
other services
Insolvency proceedings applied for in Germany

July 2020
January to July 2020
Change compared to July 2019 in%
Change compared to the previous year period in%
1 consumer and standard insolvency proceedings.
A total of
7 014
54 700
1 369
10 375
Remaining debtors
5 645
44 325
from that:
– Consumer
32 016
– natural persons as shareholders
– formerly self-employed1
1 268
9 997
– Estates and common property
2 061

Detailed data can be obtained from the Tables 52411 (bankruptcies) can be called up in the GENESIS-Online database.

Further results and methodological information are available from Technical series 2, series 4.1that are in Subject area is available.

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EDITOR’S NOTE: This article is a translation. Apologies should the grammar and / or sentence structure not be perfect.

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