Reduction in reported cases of corporate bankruptcies among businesses

In a notable development, the number of insolvencies in Germany has seen a significant decrease in recent months. This trend is particularly evident in the months of July, August, and September 2021.

According to the latest data, 4,024 consumer insolvency applications were recorded in July 2021, marking a 30.1% decrease compared to the same month in 2019. Similarly, 1,268 insolvency applications were made by previously self-employed individuals, a decrease of 18.2% compared to the same period in 2019.

The construction industry, trade sector, and hospitality industry have also seen a decrease in insolvencies. In the construction industry, there were 204 insolvency applications in July 2020, a decrease from 295 in July 2019. The trade sector reported the highest number of insolvencies in July 2020, with 228 cases, compared to 253 in July 2019. In the hospitality industry, 154 insolvency applications were reported in July 2020, compared to 185 in July 2019.

The area of freelance, scientific, and technical services also experienced a slight decrease, with 182 insolvency applications in July 2020, compared to 184 in July 2019.

However, it's important to note that the increase in claims, despite a decrease in the number of corporate insolvencies, is due to more economically significant companies filing for insolvency in July 2020. The expected claims of creditors from applied corporate insolvencies increased to 3.9 billion euros in July 2020, compared to 2.8 billion euros in July 2019.

One reason for the decreased number of insolvencies could be the suspension of the obligation for companies to file for insolvency, effective from March 1, 2020. However, no specific data is provided about the reasons for the decreased number of insolvencies beyond the months of July, August, and September 2021.

Preliminary figures for September 2021 show a significant decrease in the number of opened regular insolvency proceedings, as was the case in July and August. However, no information is given about any differences in the types or sizes of companies filing for insolvency in September 2021 compared to earlier months.

One notable case of insolvency is that of Fluhr Displays GmbH & Co. KG, which filed for insolvency in September 2020 after experiencing long-term competitive pressure, pandemic-related sales declines, and rising costs.

It's worth noting that no specific data is provided about the expected claims of creditors from the September insolvencies, and no information is given about any changes or extensions to the suspension of the obligation for companies to file for insolvency.

This decrease in insolvencies is a positive sign for the German economy, indicating a potential recovery from the economic effects of the pandemic. However, it's important to continue monitoring these trends to fully understand the current state of the economy.