Number of corporate insolvencies in 2025 reaches a ten-year high
Creditreform forecast for 2025: 23,900 corporate insolvencies expected
The number of corporate insolvencies in Germany is higher in 2025 than at any time in the past 10 years. The business information agency Creditreform expects 23,900 corporate insolvencies by the end of 2025. This was reported, among others, by tagesschau.de on December 8, 2025. This means that the number of corporate bankruptcies has increased by 8.3 percent compared to the previous year. The development in insolvencies is linked to the persistently difficult economic conditions, such as rising costs, regulatory burdens and internal problems at many companies, which is also influencing the forecasts for the coming years.
Review of 2024: Corporate insolvencies at their highest level since 2015
In 2024, the number of corporate insolvencies in Germany rose to 22,400 cases, corresponding to an increase of 24.3 percent compared to the previous year and marking the highest level since 2015. These increases in insolvencies show how sharply the number of cases has risen compared to the previous year.
Development in 2025 by months and quarters
In the first nine months of 2025, insolvencies reached a peak, with around 18,000 insolvency applications filed. In November 2025, the number of corporate bankruptcies rose by 5.7% compared to the same month of the previous year. The DIHK forecasts more than 22,000 corporate insolvencies for the full year 2025. The insolvency statistics provide up-to-date monthly results on the number of filed and opened insolvency proceedings as well as the amount of the expected claims.
Creditors’ claims: Billions in losses due to corporate bankruptcies
The claims of creditors arising from the corporate bankruptcies reported in July 2025 were estimated by the local courts at around EUR 3.7 billion. Most insolvency applications relate to the legal form of the GmbH, with the construction sector, trade, and freelance, technical and scientific services being particularly affected according to the 2024 statistics. The insolvency statistics show that most insolvency applications in 2024 were filed in the construction sector, trade, and the area of freelance, technical and scientific services.
The insolvency courts play a central role in the opening and statistical recording of the proceedings, whereby the actual figures are only included in the statistics after the court decision. The economic conditions for German industry have recently tightened massively: companies are under considerable pressure from high costs, rising energy prices, extensive regulation and more difficult access to credit. Small and medium-sized enterprises and small businesses are particularly affected by the high energy prices, which further aggravate the economic situation of many companies. The Insolvency Code (InsO) governs all corporate insolvencies in Germany and provides for two procedures: regular insolvency proceedings for companies and consumer insolvency for private individuals. Insolvency means a debtor’s inability to settle its debts or liabilities to creditors. A high number of insolvencies is considered an indicator of economic weakness and may make political measures necessary.
In the first half of 2025, around 12,000 corporate insolvencies were filed, an increase of 12.5% compared to the previous two years.
Jobs at risk: Hundreds of thousands of employees affected
The number of jobs threatened or lost due to insolvencies has risen significantly, with around 320,000 affected employees and persons in 2024. The majority of corporate insolvencies concern micro-enterprises with no more than ten employees, which account for 81.4 percent of all cases; in addition, the number of insolvent companies without employees rose by 16.8 percent in 2025. The insolvency risk among larger and medium-sized companies, particularly in the SME sector, has also increased. This development is evident across all sectors of the economy, with construction, the services sector and hospitality being particularly affected. The insolvency risk is especially high in the transport, warehousing and construction sectors. Experts such as Ludwig Hantzsch (Head of Creditreform Economic Research) and Volker Treier (DIHK Chief Analyst) provide forecasts and analyses on the subject of corporate insolvencies and emphasize the importance of the current results for economic development. The trade notification statistics are of central importance for recording business start-ups, deregistrations and closures. In addition to corporate insolvencies, there are also personal insolvencies and consumer insolvencies, in which private individuals appear as debtors; these differ in procedure and legal form from corporate insolvencies.
The filing for insolvency and the obligation to file for insolvency are regulated by law for companies and private individuals. The recording of regular insolvencies is seasonal and subject to a time lag, with the opening of the proceedings being decisive for the statistics. Insolvencies are a rare form of business closure, as only around 6% of all closures are due to an insolvency application. The results of the insolvency statistics are crucial for assessing the economic situation and deriving political measures. The burdens on companies from high costs, energy prices, regulation and credit remain high. Corporate insolvencies therefore remain a key indicator of economic development in Germany.
According to the Federal Statistical Office, the number of corporate insolvencies in the first three quarters of 2025 even rose by 11.7 percent compared to the same period of the previous year. According to these figures, a total of 18,125 companies filed for insolvency in the first three quarters. The last time there were more in this period was in 2014 (18,199 companies). Experts do not expect a rapid easing of the situation. A further increase is even to be expected. In 2024, around 121,000 insolvency proceedings were registered in Germany in total, corresponding to an increase of 10.6% compared to the previous year.
However, insolvency does not necessarily have to mean the end of the company. Especially in a crisis, it is important to act prudently and take the right steps to successfully restructure the company, according to the commercial law firm MTR Legal Rechtsanwälte, which also advises on insolvency law.
Internal causes: Management errors and lack of liquidity
The most common reasons for corporate insolvencies are management errors, financing gaps and external factors such as economic crises. The effects of the pandemic have also influenced the insolvency statistics and continue to create lasting economic challenges for many companies.
Causes of corporate insolvencies: Why companies are slipping into bankruptcy in 2025
External causes: Energy prices, regulation and weak demand
According to figures from the Federal Statistical Office, the sectors particularly affected by insolvencies in the first three quarters of 2025 were transport and warehousing, hospitality and construction. The economic conditions for German industry have tightened massively in recent months: companies are confronted with considerable burdens from high costs, rising energy prices, increasing regulation and more difficult access to credit. However, as studies by Creditreform show, there are also economic problems in healthcare businesses. In addition, companies with fundamentally viable business models are increasingly coming under pressure. The effects of the pandemic have also influenced the number of corporate insolvencies and continue to create lasting economic challenges in many sectors.
The reasons for the economic problems and the increasing number of corporate bankruptcies are diverse. Insolvency risk has increased significantly in various sectors of the economy in recent years, particularly in construction, the service sector and hospitality. Rising tariffs with the USA, cheaper products from abroad, high energy costs and declining domestic demand are just some of the factors. Frequent reasons for corporate insolvencies include management errors, financing gaps and external factors such as economic crises. Insolvencies in Germany have increased sharply, which is attributable to high costs, weak demand and great uncertainty. The importance of trade notifications and the trade notification statistics lies in systematically recording business start-ups, deregistrations and closures, thereby enabling important insights into economic development.
Persistent global crises and increasing trade conflicts are not making the situation any easier for companies in Germany. Economically troubled companies must act prudently in a crisis and take the right steps to put the business back on a financially stable footing.
Effects of corporate insolvencies on the economy, jobs and creditors
The rising number of insolvencies in Germany is having noticeable effects on the economy as a whole. Companies in the transport and construction sectors are particularly affected, where the wave of insolvencies is leading to increased uncertainty and a decline in economic growth. In the current period, numerous insolvency cases and corporate bankruptcies have been registered, which further highlights the tense economic situation. For many employees, this means the loss of their jobs or at least a deterioration in their income situation, as numerous businesses are facing economic difficulties. The number of jobs threatened or lost due to insolvencies rose to around 320,000 in 2024.
Effects on creditors and bad debt losses
Creditors are also heavily affected by the current development. Creditreform Economic Research puts the claims arising from the reported insolvencies at around EUR 40.1 billion—although this is a slight decline compared to the previous year, it still represents a substantial figure that underscores the strained situation. Bad debt losses on this scale not only burden individual companies, but can also affect entire sectors of the economy.
Regional differences in corporate bankruptcies in Germany
The publication of the insolvency statistics by the Federal Statistical Office also shows clear regional differences: while the number of corporate bankruptcies is particularly high in federal states such as North Rhine-Westphalia and Bavaria, other regions such as Saxony and Thuringia are less severely affected. These data make it possible to analyze insolvency activity in Germany in a differentiated manner and to develop targeted measures for particularly affected federal states.
The insolvency statistics and the Creditreform Economic Research database are important tools for assessing the current situation. They provide not only information on the number of insolvency applications and the development compared to the previous year, but also on the distribution of debts and the effects on creditors and employees. The trade notification statistics complement these data and provide information on economic development and the dynamics of business start-ups and closures.
The consequences of the current wave of insolvencies are complex: in addition to the immediate effects on companies and employees, Germany as a business location is also suffering from the increased number of insolvencies. The uncertainty in many sectors, the high number of insolvency applications and the growing debts pose a major challenge. In order to contain the negative consequences and strengthen the economy, targeted measures and continuous analysis of insolvency figures by the Federal Government and economic research institutes are essential.
Effects of corporate insolvencies on the economy, jobs and creditors
Measures for restructuring can also be initiated before an insolvency application is filed. Under the Insolvency Code of 1999, there are two main forms of insolvency proceedings: regular insolvency proceedings, which primarily apply to companies and self-employed persons, and consumer insolvency (personal insolvency), which is specifically intended for private individuals and consumers. Private individuals and consumers go through a separate procedure tailored to their needs. In this context, StaRUG and protective shield proceedings should be mentioned in particular.
StaRUG: Restructuring without insolvency proceedings
With the StaRUG (Corporate Stabilization and Restructuring Act), the legislator has created a legal framework that enables companies to carry out restructuring outside insolvency proceedings. The prerequisite for this is that there is an imminent inability to pay, but it has not yet occurred. Within the framework of StaRUG proceedings, the company must prepare a restructuring plan. A characteristic feature is that not all creditors must agree to the plan, but only those groups of creditors that are directly affected by the envisaged restructuring measures.
Protective shield proceedings: Restructuring under court protection
If a company is already in a serious economic crisis, but is not yet obliged to file for insolvency, it may seek restructuring by way of protective shield proceedings . As a rule, the obligation to file for insolvency exists in the event of illiquidity or over-indebtedness; in that case, an application to open insolvency proceedings is mandatory and must be filed with the competent insolvency court. This procedure is only available if there are realistic prospects of a successful restructuring. A corresponding expert certificate is required for this purpose. Once the protective shield has been granted, the company must, together with a custodian, prepare a viable insolvency plan within three months. During this period, the company is protected against enforcement measures by creditors.
Insolvency in self-administration: Procedure, advantages and requirements
Within the framework of insolvency in self-administration, the company’s management remains capable of acting, but is accompanied and supervised by a custodian. Together, they pursue the goal of economically stabilizing and realigning the company. The basis for this is an insolvency plan, which requires the approval of all creditors. A key advantage of self-administration is that the management continues to represent the company externally. This ensures that existing contacts remain in place and business relationships can continue.
Insolvency courts on self-administration: Procedure, advantages and requirements
The insolvency courts play a key role in German insolvency matters. They are the central point of contact for companies and private individuals when it comes to the opening and conduct of insolvency proceedings. With a total of 128 insolvency courts distributed across the various federal states, nationwide handling of the increasing number of insolvencies in Germany is ensured. Each insolvency court is responsible for a specific regional jurisdiction and ensures that proceedings are handled efficiently and in accordance with the law.
Among the most important tasks of the insolvency courts is deciding on the opening of insolvency proceedings. They examine the insolvency applications submitted, appoint insolvency administrators and supervise the proper conduct of the proceedings. In doing so, they maintain close communication with creditors and the appointed insolvency administrators in order to ensure a fair distribution of the insolvency estate and the protection of creditors’ interests. Especially in economically tense times, such as those currently characterized by the wave of insolvencies in Germany, the courts are of particular importance.
Another important aspect is the regular publication of information and statistics on ongoing and completed insolvency proceedings. The insolvency courts provide data on the number of proceedings opened, the companies and private individuals affected, and the respective economic sectors. This information is of great value to companies, creditors and private individuals alike in order to keep informed about the current development of insolvencies in Germany and in the individual federal states. In sectors such as construction, hospitality or transport, which are currently heavily affected by corporate insolvencies, the published figures provide important guidance.
The insolvency courts also help reduce uncertainties in dealing with insolvencies. They provide information on the requirements and procedure of insolvency proceedings, explain the differences between standard insolvency proceedings and consumer insolvency proceedings, and provide guidance on the opening of proceedings and the registration of claims. In this way, they support companies and private individuals in preparing at an early stage for possible economic difficulties and in taking the right steps.
In view of the current wave of insolvencies and growing economic uncertainty, the work of the insolvency courts is more important than ever. They ensure that the increasing number of insolvency proceedings is handled transparently and with legal certainty and provide a reliable source of information for all affected parties. Through close cooperation with the various sectors of the economy and the continuous publication of up-to-date data, the insolvency courts make a decisive contribution to addressing the economic challenges in Germany.
Insolvency in self-administration: Procedure, advantages and requirements
Procedure of self-administration and role of the custodian
If insolvency can no longer be avoided, the competent insolvency court opens the insolvency proceedings. The opening is carried out by the insolvency courts, which also decide when an insolvency application is officially included in the statistics. In this case, an insolvency administrator assumes control of the company. The creditors then have the opportunity to register their claims in the insolvency table with the insolvency administrator. The insolvency statistics provide monthly information on the number of applied-for and opened insolvency proceedings as well as the amount of the expected claims. In July 2025, the local courts put creditors’ claims from the reported corporate insolvencies at around 3.7 billion euros.
Obligation to file for insolvency: Deadlines, duties and risks for managing directors
Illiquidity and over-indebtedness as grounds for filing for insolvency
If grounds for insolvency exist – illiquidity or over-indebtedness – there is a statutory obligation for companies and private individuals to file for insolvency. In this case, the managing director of a company or a private individual must file a corresponding application to open insolvency proceedings without undue delay. Specifically, this means that the insolvency application must be filed no later than three weeks after the occurrence of illiquidity or six weeks after the occurrence of over-indebtedness. If the insolvency application is delayed despite the existence of grounds for insolvency, this constitutes the criminal offence of delayed filing for insolvency.
The Insolvency Code 1999 distinguishes between standard insolvency proceedings for companies and consumer insolvency (private insolvency) for private individuals and consumers. Private individuals and consumers may undergo their own procedure, private insolvency, in the event of illiquidity.
MTR Legal Rechtsanwälte provides comprehensive advice on corporate restructuring and other issues of insolvency law.
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