In the first four months of 2005 almost 3,400 bankruptcies were pronounced, an 8 percent increase compared to the same period last year. The increase is mainly found among private persons. The increase in the number of bankruptcies occurs since the latter half of 1999.
Number of bankruptcies pronounced
Corporate bankruptcies virtually stable
Two-thirds of bankruptcies pronounced were in the private sector. In the first four months of 2005 the number of companies and institutions that went bankrupt amounted to 2,300, slightly more than in the same period of 2004. The remainder were bankruptcies of private persons (1,100). Bankruptcies involving private persons rose by 22 percent compared to 2004. Two-thirds of these persons were in the age category 25-45. In the category 60 years and older bankruptcies are very rare.
Average debt more than 300 thousand euro
Bankruptcies settled in 2004 involved an average unpaid debt of 318 thousand euro. The amount varies according to the legal form: the average unpaid debt for partnerships is 484 thousand euro, for one-man businesses 160 thousand euro and for private persons 81 thousand euro.
Average unpaid debt, 2004
The anticipated unpaid debt of bankruptcies pronounced will approximate 3 billion euro in 2004.
Also increase in debt restructuring schemes
In the first quarter of 2005 more than 3,700 court orders for debt repayment were pronounced, an increase by 8 percent on the first quarter of 2004. Over 60 percent of debt restructuring schemes applies to persons aged between 25 and 45 years. Commonly, 20 percent of restructures debts end in bankruptcies.