Germany's Bankruptcy Crisis Deepens
Economy / Finance

Germany’s Bankruptcy Crisis Deepens

Preliminary data from the Federal Statistical Office (Destatis) indicates a rise in insolvency filings within Germany. For June 2025, the number of applications for standard insolvency proceedings increased by 2.4 percent compared to the same month in the previous year.

It’s important to note that these figures reflect applications recorded after an initial ruling by the insolvency court. The actual date of the insolvency application often precedes this by approximately three months.

Finalized data for April 2025 reveals 2,125 business insolvency applications were registered by local courts – an increase of 11.5 percent compared to April 2024.

The total value of creditor claims associated with the April 2025 business insolvencies was reported by local courts at approximately €2.5 billion. This represents a significant decrease from the €11.4 billion in claims reported for April 2024. This decline is attributed to the higher proportion of economically significant companies filing for insolvency in April 2024 relative to April 2025.

When calculating insolvencies per 10,000 companies, Germany recorded 6.1 business insolvencies in April 2025. The transportation and warehousing sector experienced the highest rate, with 11.3 insolvencies per 10,000 companies. Construction and hospitality followed, reporting 9.8 insolvencies per 10,000 companies respectively.

Consumer insolvency filings also increased. Destatis reported 6,328 consumer insolvency cases for April 2025, representing a 0.8 percent rise compared to April 2024.