Germany is facing a burgeoning insolvency crisis, with new data revealing a significant uptick in business and consumer bankruptcies in 2025, marking the highest levels in over a decade. A projection released by Creditreform indicates a total of 23,900 corporate insolvencies throughout the year, representing an 8.3% increase compared to 2024 (22,070 cases). While the growth rate has demonstrably slowed from the explosive surges witnessed in the preceding two years (2023: +22.9%, 2024: +22.5%), the underlying issues remain deeply concerning.
The crisis is disproportionately impacting Germany’s vital Mittelstand – the backbone of the nation’s economy – as well as consumers. Patrik-Ludwig Hantzsch, Head of Creditreform Economic Research, attributes the corporate failures to a toxic combination of high existing debt burdens, an increasingly difficult access to credit and structural challenges including inflated energy prices and a regulatory burden considered excessive by many businesses. This combination is, he argues, “breaking the backs” of numerous enterprises.
Consumer insolvencies followed a similar negative trajectory, rising by 6.5% to approximately 76,300 cases (from 71,630 in 2024), the highest figures recorded since 2016. Hantzsch points to a “growing indebtedness” among citizens as the primary driver, with an estimated 5.67 million individuals now officially classified as over-indebted nationwide.
The most acute impact is being felt amongst micro-enterprises, defined as those employing ten or fewer individuals. These businesses accounted for roughly 19,500 insolvency filings – a significant increase from the previous year and representing 81.6% of all corporate failures. While larger corporations (employing over 250 individuals) experienced a more moderate rise in insolvencies, the situation remains precarious. The healthcare and care sectors were particularly hard-hit, experiencing several high-profile collapses.
The financial repercussions for creditors, including suppliers and banks, remain substantial. Creditreform estimates total creditor losses for 2025 at approximately €57 billion – only marginally below the €59.1 billion recorded the previous year. The average amount of debts at risk per insolvency case exceeds €2 million. These failures directly impacted an estimated 285,000 workers, although that figure represents a slight decrease from the 291,000 affected in 2024.
Specific sectors exhibiting the steepest increases include the manufacturing industry (+10.3%) and retail (+10.4%). The construction sector saw a more modest rise of 4.7%, while the service sector’s upward trend was also contained (+8.4%). Across construction, manufacturing and services, insolvency rates now stand consistently over one-third higher than pre-pandemic levels (2019).
The overall assessment of corporate creditworthiness paints a persistently negative picture across numerous industries, with the health and social care sectors facing the greatest challenges. The “mining, stone and earth” sector currently boasts the strongest creditworthiness, contrasting sharply with the struggling hospitality sector. While conditions have marginally improved since the peak of the COVID-19 crisis, the creditworthiness of restaurants and bars remains significantly impaired, posing a long-term concern for economic recovery and job creation.
