Increase in Bankruptcy Filings: A Spike in Business and Individual Insolvencies Recorded in January
In a recent statement, the Federal Statistical Office (Destatis) announced a concerning trend in Germany – an increase in insolvencies. This increase, which started in mid-2023, has continued unabated, with the exception of June 2024, which saw a moderate increase of 6.3%.
The service sector, including the hospitality industry, and the automotive sector have been the most affected by corporate insolvencies. From January 2023 to November 2024, just under 7,000 insolvency cases were reported in the service sector, while the automotive sector experienced notable insolvencies, as evidenced by the insolvency of the German company Allgaier in June 2023.
Companies in the transport and logistics, construction, and hospitality sectors were particularly affected in November 2024. The claims of creditors from these corporate insolvencies amounted to approximately 2.8 billion euros in November 2024.
Consumer insolvencies also increased during this period. In November 2024, consumer insolvencies also increased compared to the same month the previous year. The number of consumer insolvencies in Germany increased by 2.8% in November 2024, reaching a total of 5,971 cases.
However, when it comes to the total amount of creditor claims during this period, no specific data is available for changes from January 2023 to November 2024. The prominence of insolvencies in the service sector suggests significant creditor exposure in that area, but no clear quantitative data on changes in creditor claims within this timeframe was found in the available sources.
The trend of rising insolvencies in Germany, affecting both businesses and consumers, has been ongoing. This increase in insolvencies in November 2024 was specific to Germany, not the city or district of Offenbach.
As we move into January 2025, the number of regular insolvencies in Germany increased by 14.1% compared to the previous year. The claims of creditors from consumer insolvencies in January 2025 have not been specified.
In summary, the service sector (including hospitality) and the automotive sector have been the most affected by corporate insolvencies, while the trend of rising insolvencies in Germany, including both businesses and consumers, has been ongoing since mid-2023. However, no specific data is available on the total amount of creditor claims during this period.
What could be the potential impact on personal-finance for individuals and investors due to the continued increase in business insolvencies, particularly in the service sector and the automotive sector, as well as the rise in consumer insolvencies in Germany since mid-2023? In light of the ongoing trend of rising insolvencies, what financial strategies might prove beneficial in navigating these uncertain times?
