Germany is experiencing a notable surge in bankruptcies among both companies and private individuals. According to preliminary data from the Federal Statistical Office (Destatis), the number of corporate insolvency filings rose by 10.4 percent in September 2025 compared to the same month last year.
The upward trend is clear: the number of insolvency proceedings has been increasing steadily since the start of the year, showing no signs of stabilization.
Corporate bankruptcies at a two-year high
Final figures for July 2025 confirm the sharp turnaround in business failures.
Local courts reported 2,197 corporate insolvencies, representing a 13.4 percent increase year-on-year.
Sectors most affected include transport and logistics — with 12.7 insolvencies per 10,000 companies — followed by hospitality and business services (such as temporary employment agencies), each with around 9.9 cases per 10,000 companies.
The financial fallout is also growing: creditors’ claims from company bankruptcies totaled €3.7 billion in July, roughly €500 million more than in the same month of 2024.
Trend points to lasting economic pressure
A look at previous months shows the rise is not a short-term fluctuation but part of a sustained trend.
Since January 2025, the number of new insolvency filings has exceeded last year’s levels every single month.
Increases of 9 percent in January, 7.1 percent in February, and 6.3 percent in March were followed by a 12.6 percent jump in June — suggesting mounting structural stress within the German economy.
Private bankruptcies on the rise
Not only businesses are struggling.
Household finances are also under pressure, with consumer insolvencies rising sharply.
Courts registered 7,553 personal bankruptcy cases in July 2025, an increase of 12.9 percent compared with July 2024.
Experts attribute this to rising living costs, higher interest rates, and the cumulative impact of inflation and rent increases.
Many households that previously managed to cover expenses are now reaching their financial limits.
Outlook: no relief in sight
Economists warn that insolvency numbers may continue to rise into 2026 as companies face a combination of sluggish demand, expensive credit, and weak exports.
For consumers, the burden of persistent inflation and tight household budgets could keep insolvency rates elevated well into next year — underscoring a broader slowdown in Europe’s largest economy.
