With 8,176 debt settlement procedures opened last year, 13 percent more cases were registered than in 2021. “Personal error” (28.1 percent) is the most common reason people in this country slide into private bankruptcy.
According to a broadcast by the Credit Protection Association of 1870 (KSV), the consistent overestimation of one’s own performance over a longer period of 19.3 percent often leads to a financial impasse.
Corona crisis is hardly significant
In addition, ‘former self-employed persons’ (26.7 percent) and reduced income (17.2 percent) are common reasons for bankruptcies. In stark contrast to the financial consequences of the Corona crisis, which are hardly significant. This appears from a current analysis by KSV 1870 of approximately 6,000 private bankruptcies in the previous year.
“This behavior was already recognizable before the crisis years”
“Even though consumer behavior has improved slightly compared to before, about one in four private sector bankruptcies is still due to misallocation of own funds. But that has less to do with Corona or rising costs, because this behavior was already recognizable before the crisis years,” explains Karl-Heinz Götze, head of bankruptcy KSV1870. “Personal error” is the most common cause in Styria (38 percent), and least common in Vorarlberg (19.7 percent).
Insolvency director “Former self-employed person”
In addition, 1.3 percentage points more private bankruptcies due to former self-employed persons were registered in the previous year than in 2021.
In Salzburg (39.6 percent), Burgenland (36.9 percent) and Tyrol (36.4 percent), in particular, an above-average number of bankruptcies was due to this cause. In contrast, Upper Austria recorded significantly fewer cases of this type at 20.2 percent.
Source: Krone
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.
