The end of the moratorium causes bankruptcy proceedings to skyrocket in September for the seventh straight month, according to data from the CGPJ
The increase in evictions in Spain during the first half of the year stopped dead in the third quarter (June-August), with a 14.6% drop compared to the same period of the previous year to a total of 7,397. Of that total figure, launches resulting from bankruptcies (due to non-payment of the loan) decreased by 30.5%, to 1,530 proceedings.
As usual, evictions due to non-payment of rent remain the most numerous this quarter. Specifically, and according to data published Friday by the General Council for the Judiciary (CGPJ), 73.7% of the recorded releases in the period (5,455) were the result of proceedings derived from the Urban Leasing Act (LAU). However, the figure is also 9% lower than that of the third quarter of 2021.
We should not forget that the government has extended until the end of the year the ban on ‘evicting’ vulnerable families from their homes if they cannot pay their mortgage or rent. However, court proceedings are still pending prior to this aid measure.
Before proceeding to revolts, these processes go through the so-called foreclosures, the procedures in which payment of the debts is first demanded from the creditor – when three to six installments remain in default – and, once formalized. , the eviction continues. Also. During the third quarter of the year, 5,637 bankruptcies were filed with the court, 13.3% less than in the same period of the previous year.
The CGPJ data also reflects how 607 verbal processes for illegal occupancy of a residence were recorded in the third quarter of 2022. The figure is also lower, at 33%, compared to the previous year. Catalonia has the highest number of lawsuits of this type, 130, representing 21.4 percent of the national total. They were followed by Andalusia, with 102; Valencian Community, with 96, and Madrid, with 51.
Despite the fall in the number of evictions, total figures remain high in an environment of maximum uncertainty due to the escalation of the Euribor and rising rents. And the same is happening to companies that are also faced with a sharp rise in costs due to rising inflation.
The situation and the end of the post-covid moratorium in place until June 30 has led to an increase in bankruptcy proceedings filed between July and September for the ninth consecutive quarter, with an increase of 76.2% compared to from 2021.
According to CGPJ data, those of non-entrepreneurs rose 51.1%; that of corporate individuals, 82.6% and that of legal entities, 122.8%.
As for the files of article 169 of the consolidated text of the Bankruptcy Act, related to the substantial amendment of the collective terms of employment (OVA), 79 were filed, which meant a reduction of 24.8 percent if they were filed. quarter of last year.
In the third quarter, 30,167 applications for dismissal were submitted, 14.1% more than in the same quarter of 2021. With 5,770 (19.1% of the national total), Catalonia was the autonomous region where the most demands of this type were made. They were followed by Madrid, with 5,761; Andalusia, with 4,923, and the Valencian Community, with 3,519.
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
