Number of Corporate Insolvencies in 2025 at Ten-Year High
Creditreform Forecast 2025: 23,900 Corporate Insolvencies Expected
The number of corporate insolvencies in Germany is the highest in 2025 than it has been in 10 years. The credit reference 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 the number of business bankruptcies has increased by 8.3 percent compared to the previous year. The rise in bankruptcies is related to the persistently challenging economic conditions, such as rising costs, regulatory burdens, and internal problems faced by many companies, which also affect forecasts for the coming years.
Looking Back at 2024: Corporate Insolvencies at Highest Level Since 2015
In 2024, the number of corporate insolvencies in Germany rose to 22,400 cases, an increase of 24.3 percent compared to the previous year, marking the highest level since 2015. These increases in insolvencies demonstrate how significantly the number of cases has risen compared to the previous year.
Development of 2025 by Months and Quarters
Insolvencies reached a peak in the first nine months of 2025, with around 18,000 insolvencies filed. In November 2025, the number of business bankruptcies increased by 5.7% compared to the same month the previous year. The DIHK forecasts more than 22,000 corporate insolvencies for the whole of 2025. The insolvency statistics provide monthly updates on the number of insolvency proceedings filed and opened, as well as the expected amount of claims.
Creditors’ Claims: Billion-Euro Losses Due to Business Bankruptcies
The creditors’ claims from the business bankruptcies reported in July 2025 were estimated by the district courts at around 3.7 billion euros. Most insolvency applications are for the legal form of the GmbH, with construction, trade, and freelance, technical, and scientific services being particularly affected according to 2024 statistics. The insolvency statistics show that most insolvency applications in 2024 were for the construction industry, trade, and the field of freelance, technical, and scientific services.
Insolvency courts play a central role in the opening and statistical recording of proceedings, with actual figures not included in the statistics until after a court decision. The economic conditions for German industry have recently deteriorated significantly: companies face considerable burdens from high costs, rising energy prices, extensive regulation, and restricted access to credit. Especially medium-sized companies and small businesses are hit hard by high energy prices, further exacerbating the economic situation for many firms. The Insolvency Act (InsO) in Germany regulates all corporate insolvencies and provides for two procedures: regular insolvency proceedings for companies and consumer insolvency for private individuals. Insolvency indicates a debtor’s inability to meet their debts or obligations to creditors. A high number of insolvencies is seen as an indicator of economic weakness and may necessitate political action.
In the first half of 2025, about 12,000 business 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 threatened or eliminated jobs due to insolvencies has risen significantly, with around 320,000 affected employees and individuals in 2024. The majority of corporate insolvencies affect micro-enterprises with at most ten employees, accounting for 81.4 percent of all cases; additionally, the number of insolvent companies without employees increased by 16.8 percent in 2025. The insolvency risk for larger and medium-sized companies, especially in the mid-sized sector, has also increased. The trend is evident in all economic sectors, with the construction industry, the service sector, and the hospitality sector being particularly affected. The insolvency risk is particularly high in the areas of transportation, warehousing, and construction. Experts such as Ludwig Hantzsch (head of Creditreform economic research) and Volker Treier (DIHK chief analyst) provide forecasts and analyses on corporate insolvencies and emphasize the importance of current results for economic development. The commercial register statistics are crucial for recording the formation, deregistration, and closure of businesses. In addition to corporate insolvencies, there are also private and consumer insolvencies where individuals act as debtors; these differ in procedure and legal form from corporate bankruptcies.
The application for insolvency and the obligation to file for insolvency are legally regulated for companies and individuals. The recording of regular insolvencies is seasonal and time-delayed, with the opening of proceedings being crucial for the statistics. Insolvencies represent an uncommon form of business closure, as only about 6% of all closures result from an insolvency application. The results of insolvency statistics are critical for assessing the economic situation and deriving political measures. The burdens on companies from high costs, energy prices, regulation, and credit remain high. Therefore, corporate insolvencies remain a key indicator for economic development in Germany.
According to the Federal Statistical Office, the number of corporate insolvencies in the first three quarters of 2025 even increased by 11.7 percent compared to the same period the year before. In total, 18,125 companies filed for insolvency in the first three quarters. More were last recorded during this period in 2014 (18,199 companies). Experts do not expect a rapid easing. In fact, a further increase is anticipated. In 2024, a total of around 121,000 insolvency proceedings were registered in Germany, an increase of 10.6% compared to the previous year.
However, insolvency does not necessarily mean the end of the company. It is important to act prudently during the crisis and initiate the right steps for successful restructuring of the company, according to the 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 pandemic’s effects have also influenced the insolvency statistics and continue to create sustainable economic challenges for many companies.
Causes of Corporate Insolvencies: Why Companies Go Bankrupt in 2025
External Causes: Energy Prices, Regulation, and Weak Demand
In the first three quarters of 2025, according to the Federal Statistical Office, the sectors most affected by insolvencies were transportation and warehousing, gastronomy, and construction. The economic conditions for the German industry have drastically worsened in recent months: companies face significant burdens from high costs, rising energy prices, increasing regulation, and limited access to credit. However, as Creditreform studies show, there are also economic problems in the healthcare sector. Moreover, companies with otherwise functioning business models are increasingly under pressure. The pandemic’s impact has further influenced the number of corporate insolvencies, creating ongoing economic challenges in many sectors.
The reasons for economic difficulties and the rising number of business bankruptcies are manifold. Insolvency risk has noticeably increased in various economic sectors in recent years, especially in construction, the service sector, and hospitality. Increased tariffs with the USA, cheaper products from abroad, high energy costs, and declining domestic demand are just some aspects. Common reasons for corporate bankruptcies are management errors, financing gaps, and external factors such as economic crises. Insolvencies in Germany have risen sharply, attributed to high costs, weak demand, and great uncertainty. The importance of business registration statistics lies in systematically recording business formations, deregistrations, and closures, providing crucial insights into economic development.
Ongoing global crises and increasing trade conflicts are not making the situation easier for companies in Germany. Economically distressed companies need to act prudently during the crisis and take the right steps to put their operations back on a stable economic footing.
Impact of Corporate Insolvencies on the Economy, Jobs, and Creditors
The rising number of insolvencies in Germany has a noticeable impact on the overall economy. Companies in the transportation and construction industries are particularly affected, where the wave of bankruptcies leads to increased uncertainty and a decline in economic growth. Numerous insolvency cases have been registered during the current period, which further highlights the strained economic situation. For many employees, this means losing their jobs or at least a deterioration in their income situation as numerous companies fall into economic difficulties. The number of threatened or eliminated jobs due to insolvencies rose to around 320,000 in 2024.
Impact on Creditors and Claim Losses
The current developments have also had a significant impact on creditors. Creditreform economic research indicates that the claims from reported insolvencies amount to around 40.1 billion euros—a slight decline compared to the previous year, yet still a substantial figure that underscores the strained situation. Claim losses of this magnitude not only impact individual companies but can affect entire economic sectors.
Regional Differences in Business Bankruptcies in Germany
The release of insolvency statistics by the Federal Statistical Office also reveals significant regional differences: while states like North Rhine-Westphalia and Bavaria have particularly high numbers of business bankruptcies, other regions like Saxony and Thuringia are less affected. This data allows for a differentiated analysis of the insolvency situation in Germany and the development of targeted measures for especially affected federal states.
The insolvency statistics and the Creditreform economic research database are essential tools for assessing the current situation. They not only provide information on the number of insolvency applications and developments compared to the previous year but also on the distribution of debts and the impact on creditors and employees. The business registration statistics complement these data and provide insights into economic development and the dynamics of business formations and closures.
The consequences of the current wave of insolvencies are multi-layered: in addition to the immediate effects on companies and employees, the business location Germany also suffers from the increased number of insolvencies. The uncertainty in many industries, the high number of insolvency applications, and the growing debt present a major challenge. To mitigate the negative effects and strengthen the economy, targeted measures and continuous analysis of insolvency figures by the federal government and economic research institutes are essential.
Impact of Corporate Insolvencies on the Economy, Jobs, and Creditors
Moreover, restructuring measures can be initiated even before filing an insolvency application. According to the Insolvency Act 1999, there are two main forms of insolvency proceedings: regular insolvency proceedings, primarily applicable to companies and self-employed individuals, and consumer insolvency (personal bankruptcy) specifically for private individuals and consumers. Private individuals and consumers go through their own procedure customized to their needs. The StaRUG and the protective shield procedure are particularly noteworthy.
StaRUG: Restructuring Without Insolvency Proceedings
With the StaRUG (Act on the Stabilization and Restructuring Framework for Enterprises), the legislator has created a legal framework that enables companies to carry out a restructuring outside of insolvency proceedings. The prerequisite for this is that while imminent insolvency exists, it has not yet occurred. Within the StaRUG process, the company must develop a restructuring plan. A characteristic feature is that not all creditors must agree to the plan, but only those creditor groups directly affected by the intended restructuring measures.
Protective Shield Proceedings: Restructuring under Court ProtectionIf a company is already in a serious economic crisis, but is not yet obliged to file for insolvency, it can seek restructuring through a protective shield proceeding. The obligation to file for insolvency generally exists in cases of insolvency or over-indebtedness; the application to open insolvency proceedings is then mandatory and must be filed with the competent insolvency court. This procedure is only considered if there are realistic prospects for a successful restructuring. A corresponding expert certificate is required for this. After approval of the protective shield, the company must work with a trustee to prepare a viable insolvency plan within three months. During this period, the company is protected from enforcement actions by creditors.
Self-Administration Insolvency: Process, Advantages, and Requirements
In the course of insolvency in self-administration, the company management remains operational but is accompanied and monitored by a trustee. Together, they pursue the goal of economically stabilizing and realigning the company. The basis for this is an insolvency plan that requires the approval of all creditors. A significant advantage of self-administration is that the management continues to represent the company externally. As a result, existing contacts are maintained, and business relationships can be continued.
Insolvency Courts on Self-Administration: Process, Advantages, and Requirements
In the German insolvency process, insolvency courts play a key role. They are the central point of contact for companies and individuals when it comes to the opening and conduct of insolvency proceedings. With a total of 128 insolvency courts distributed across the different federal states, comprehensive handling of the growing number of insolvencies in Germany is ensured. Each insolvency court is responsible for a specific regional jurisdiction and ensures that proceedings are effectively handled according to legal guidelines.
One of the most important tasks of the insolvency courts is the decision on the opening of insolvency proceedings. They review the submitted insolvency applications, appoint insolvency administrators, and monitor the proper conduct of the proceedings. They maintain close communication with creditors and appointed insolvency administrators to ensure fair distribution of the insolvency estate and protect creditors’ interests. Especially in economically challenging times, such as those currently marked by the wave of insolvencies in Germany, the courts have a special significance.
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 individuals affected, and the respective economic sectors involved. This information is invaluable for companies, creditors, and private individuals to stay informed about the current development of insolvencies in Germany and the individual federal states. Particularly in industries such as construction, hospitality, or the transport sector, which are currently heavily affected by corporate bankruptcies, the published figures offer important guidance.
Insolvency courts also contribute to reducing uncertainties in dealing with insolvencies. They provide information about the requirements and procedures of insolvency proceedings, explain the differences between regular insolvency and consumer insolvency, and give advice on the opening of proceedings as well as the registration of claims. This helps companies and individuals prepare for potential economic difficulties early and take the appropriate steps.
In light of the current wave of insolvencies and the 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 legally, providing a reliable source of information for all parties involved. Through close cooperation with various economic sectors and continuous publication of current data, insolvency courts make a decisive contribution to overcoming the economic challenges in Germany.
Self-Administration Insolvency: Process, Advantages, and Requirements
Process of Self-Administration and Role of the TrusteeIf insolvency cannot 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 takes over the management of the company. 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 insolvency applications and proceedings opened, as well as on the expected amount of claims. In July 2025, the district courts quantified the claims of creditors from reported corporate bankruptcies at approximately 3.7 billion euros.
Obligation to File for Insolvency: Deadlines, Duties, and Risks for Directors
Insolvency and Over-Indebtedness as Grounds for Insolvency ApplicationIf an insolvency reason—insolvency or over-indebtedness—exists, there is a statutory obligation to file for insolvency for companies and individuals. The director of a company or an individual must then promptly file a corresponding application for the opening of insolvency proceedings. Specifically, this means that the insolvency application must be filed no later than three weeks after the occurrence of insolvency or six weeks after the occurrence of over-indebtedness. Delaying the insolvency application despite the existence of a reason for insolvency constitutes criminal insolvency delay.
The Insolvency Act of 1999 distinguishes between regular insolvency proceedings for companies and consumer insolvency (personal insolvency) for individuals and consumers. Individuals and consumers can undergo personal insolvency proceedings in the event of insolvency.
MTR Legal Attorneys provide comprehensive advice on the restructuring of companies and other aspects of insolvency law.
Feel free to contact us!
