The number of personal bankruptcies in September was the lowest in 6 years

The number of entrepreneur bankruptcies was the lowest since January 2014. This September, 64 company bankruptcies, 445 entrepreneur bankruptcies, and 881 personal bankruptcies were declared. The number of personal bankruptcies was the lowest in the last 6 years. At the same time, 77 companies, 394 entrepreneurs, and 851 persons proposed bankruptcy. This is based on an analysis carried out by CRIF using the data on the server.

In September, the number of company bankruptcies increased month-on-month by 8, while the number of company bankruptcy proposals decreased by 4. The number of entrepreneur bankruptcies decreased month-on-month by 107. While less than 445 entrepreneur bankruptcies were last announced in January 2014. In contrast, the number of entrepreneur bankruptcy proposals slightly increased, specifically by 17 proposals.

“Following the Insolvency Act amendment effective as of this July, the number of bankruptcy proposals submitted within one month decreased in comparison to the first half of the year. The decrease applies to both companies and entrepreneurs. Such development will reinforce the already existing trend of declining number of bankruptcies related to the improving economic situation,” says Věra Kameníčková, analyst for CRIF – Czech Credit Bureau.

Over the past twelve months, 805 companies declared bankruptcy, 85, or 10%, less than in the previous period and the least since 2008. While at the same time, 6,583 individual entrepreneurs declared bankruptcy over the past twelve months. In comparison to the same period of last year, the number decreased by 596, or 8%.

This September marked the biggest number of company bankruptcies in Prague where 24 bankruptcies were declared. Followed by the Pilsen Region with 7 bankruptcies and the Zlín and Moravian-Silesian Region equally with 6 bankruptcies. The Pardubice, Hradec Králové and Karlovy Vary Regions each registered one company bankruptcy and no bankruptcy was declared in the Vysočina Region.

In the last twelve months, the biggest number of company bankruptcies was declared in Prague (325) and the lowest number in the Vysočina (13) and Liberec (22) Region. The year-on-year number of bankruptcy decreased in 12 out of 14 regions with the biggest decrease in the Olomouc Region (- 29%).