6.5% less insolvencies in 2008

For the first time since the introduction of the Insolvency Code in the year 1999 did not only the number of business insolvencies decrease in Germany, but also that of private consumers. According to the Federal Statistical Office, in 2008 local courts registered in total 155,202 insolvencies, 98,140 of which of private consumers and 29,291 by businesses. This was a drop by 6.5% in the number of total insolvencies as compared to the year 2007.

The number of consumer insolvencies fell by 7.1%, that by companies by 4.5% and all others by 6.9%. Following a record number of insolvencies in 2003 the number of insolvencies has therefore dropped for the fifth time in a row.

Unsettled claims by creditors amounted to about 33 billion Euros in Germany in 2008 which is about one billion less than in the previous year. Businesses insolvencies accounted for about two thirds of the total volume of unsettled claims.

Taking into account data provided by insolvent companies the number of people affected by insolvencies amounted to 122,000 in the year 2008 which were 4000 people less than in 2007. However, about 16% of insolvent businesses did not provide any data about the number of employees affected by this. GERMAN