When aid and deferrals expire, the insolvency statistics will turn out to be strong.
The corona economic crisis will only be reflected in the insolvency statistics this year with a delay. If government aid and loan deferrals expire, the bankruptcy wave will roll in from the middle of the year, expect creditor protection organizations. Clemens Mitterlehner from the debt counseling department also expects a sharp rise in personal bankruptcies.
“The crisis in personal bankruptcies will drag on well into the next few years, not just 2021,” said Mitterlehner on Monday in an article in the Ö1 journal. In the previous year, almost 7,300 people filed for personal bankruptcy, almost a quarter less than in 2019. The Alpine Creditors' Association (AKV) expects a 50 percent increase in personal bankruptcies in 2021.
Mitterlehner calls for individual solutions for the loan deferrals that expire at the end of January. “Some have only temporary problems, some had them before. Postponing deferrals does not solve the problem. We are pushing a mountain of bankruptcies before us.” Debt counseling takes care of around 70 percent of personal bankruptcies in Austria. As soon as the deferrals have expired, a rush is expected.
A new EU directive aims to make things easier for companies that have slipped into bankruptcy. According to Mitterlehner, this should also apply to private individuals. “All those affected should be excused on the same terms,” said Mitterlehner.
