Hamburg, April 13, 2018

Private insolvencies drop by 6.8 percent in Germany - Bremen and Saarland insolvency strongholds

Private insolvencies declined for the seventh consecutive year in 2017. Last year 94,079 private individuals had to file for insolvency - the lowest number since 2004. Private bankruptcies thus fell by 6.8 percent compared to 2016 (2016: 100,984). These are the key findings of the CRIFBÜRGEL study "Debt Barometer 2017". Compared to the record insolvency year 2010, when 139,110 private individuals had to file for insolvency, the number of cases fell by 34.4 percent in 2017.

The main reason for the renewed decline in consumer insolvencies is the continued positive situation of private individuals. They benefit from improved labor market conditions with falling unemployment and rising wages.

"Unemployment and the associated deterioration in income is the main driver of private insolvency. The formula for fewer private bankruptcies is therefore simple. An increase in the number of employees leads to a decline in private insolvencies", CRIFBÜRGEL Managing Director Ingrid Riehl explains the decline in insolvencies. An increase in the financial burden on consumers, for example due to a deterioration in the situation on the labor market or an interest rate turnaround, would lead to an increase in private insolvencies," said Riehl. Another reason for fewer private insolvencies is of a methodological nature on the part of those affected. For example, many over-indebted citizens who use a garnishment protection account see no need to file for private insolvency. This is the case if the monthly income is so low that it is below the attachable amount.

For 2018 as a whole, CRIFBÜRGEL anticipates a further decline in private bankruptcies to 90,000 cases (down 4.3 percent) due to the continuing good conditions for private individuals.

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