Number of personal bankruptcies up 13% at record 19,165 in 2013

​The number of declared personal bankruptcies rose by 13 percent year-on-year to record-high 19,165 in the Czech Republic in 2013, but the growth of the bankruptcies was markedly slower than in the previous years, according to information released by company CRIF.

​The number of filed petitions for personal bankruptcy rose by one-tenth year-on-year to 26,169 last year.

More than 57,000 personal bankruptcies have been declared and over 84,000 petitions for personal bankruptcy have been lodged since January 2008.

"Despite the initial fast growth in personal bankruptcies, their dynamics decreased significantly in the last year," CRIF analyst Vera Kamenickova said.

Courts rejected 17 percent of the total number of the bankruptcy petitions filed in the entire period. The most frequent reason for the rejection were formal shortcomings.

Only 0.4 percent of the petitions were rejected because the debtor did not comply with all the conditions required to declare a personal bankruptcy.

The share of rejected petitions has been decreasing gradually, which shows that people have been learning to use the institute of personal bankruptcy to resolve their difficult financial situation, according to Kamenickova.

The highest number of personal bankruptcies was declared in the Stredocesky region in central Bohemia (2,425) and in the Ustecky region in northern Bohemia (2,396) in 2013.

In contrast, the number of personal bankruptcies was the lowest in the Vysocina region (560) and in the Zlinsky region (851), both in southern Moravia.

The number of personal bankruptcies dropped in three regions in a year-on-year comparison.

The decline was the fastest in the Plzensky region in western Bohemia (a drop of 22 percent). The number also fell in the Karlovarsky region in western Bohemia and in the Olomoucky region in northern Moravia.

On the other hand, the fastest growth of personal bankruptcies was recorded in the Jihomoravsky region (growth of 60 percent) and in the Zlinsky region (growth of 40 percent). Both the regions are in southern Moravia.

In December alone, courts declared a total of 1,654 personal bankruptcies, which was 26 cases more than in November.

Debtors filed a total of 2,298 petitions for personal bankruptcy in December, a drop of 199 compared with the previous month.

Number of personal bankruptcies and bankruptcy petitions in CR 

Source: CRIF - Czech Credit Bureau

Source: CTK, 6. 1. 2014, Section CTK: cce bns, Author: kou/er