Bankruptcy is increasingly affecting larger companies

The consequences of the corona crisis in the economy are becoming increasingly visible. New data from North Rhine-Westphalia show that large companies in particular are now affected by bankruptcy but the number of personal bankruptcies also rose by leaps and bounds.

In the first half of 2021, larger companies in North Rhine-Westphalia increasingly filed for bankruptcy in view of the corona crisis. At the same time, according to the State Office for Statistics, the number of personal bankruptcies rose by leaps and bounds, and statisticians suspect that this development was the result of legal changes.

As the state office in Düsseldorf announced, the number of corporate insolvencies fell by a total of twelve percent to 2111 proceedings during the period. At the same time, the total of insolvency claims in these proceedings increased significantly in the first half of the year by more than 29 percent to 4.3 billion euros.

“The reason for the increase in claims while the number of bankruptcies fell at the same time was that a higher number of economically important companies filed for bankruptcy,” it said. In addition, as a corona measure, the obligation to file for insolvency for companies was partially suspended until April 30, 2021. That also explains the decline in the number of bankruptcies. The insolvency figures for hotels, providers of holiday apartments and campsites, for example, were above the level of the pre-crisis period.

In the first half of 2021, consumer bankruptcies in North Rhine-Westphalia saw a jump of 53 percent to a good 10,600. At the end of 2020, a law was passed to shorten the residual debt discharge to three years. In view of this change in the law, many debtors would probably have postponed their applications and then submitted them after the turn of the year, the state office said.

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