Fewer corporate bankruptcies reported

Shop closed due to corona crisis, via dts
Shop closed due to corona crisis, via dts
The German local courts reported 2020 percent fewer corporate insolvencies in the first half of 6,2 than in the corresponding period of the previous year.

In total there were 9.006 bankruptcies, announced the Federal Statistical Office (Destatis) on Thursday. Most corporate insolvencies were in the trade sector (including maintenance and repair of motor vehicles) with 1.485 cases (first half of 2019: 1.653).

Construction companies filed 1.462 insolvency applications (first half of 2019: 1.586). In the hospitality industry 1.004 (first half of 2019: 1.143) and 974 (first half of 2019: 1.032) in professional, scientific and technical services were reported. According to the local courts, the expected claims of the creditors from corporate insolvencies rose significantly in the first half of 2020 to 16,7 billion euros. In the first six months of the previous year, they were still 10,2 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 the first half of 2020 than in the same period of 2019, according to statisticians. As in the previous months, the provisional information on the regular insolvencies that have been opened also shows a significant decrease in proceedings for August 2020. According to the Federal Office, the number of regular insolvency proceedings opened fell by 38,9 percent compared to August 2019. The large decline in insolvency applications from consumers is explained on the one hand by the restricted operation of the competent insolvency courts during the corona pandemic and the resulting longer processing time. On the other hand, consumers have probably postponed the time of their bankruptcy filing due to the pandemic, according to statisticians.