Family and Company Bankruptcies Rose by 16.5% in Q3

The number of families and businesses filing for bankruptcy (insolvency and bankruptcy) due to their inability to meet their payments and debts, reached 1,646 in the third quarter of this year, which represents an increase of 16.5% over the same period of 2011.

Insolvent companies grew by 21.6% in the third quarter, to 1,466, while the number of insolvent families fell by 13% compared to the same quarter of 2011, registering 180 bankruptcy proceedings, according to the Bankruptcy Procedure Statistics published by the National Institute of Statistics on Tuesday.

Compared with the second quarter, the number of debtors fell by 27.6% between July and September, with a drop of 27.6% in companies declaring bankruptcy and a cut of 26.8% in families entering bankruptcy.

77.8% of the 1,466 companies declaring insolvency in the third quarter were limited companies, and 29.7% of these companies (436) were principally engaged in construction and real estate.

Behind construction stood the trade sector, which accounted for 19.9% of insolvent companies in the third quarter (292 procedures), and industry and energy, with 18.1% of the proceedings (266).

Among the companies that were declared insolvent in the third quarter, 252 were corporations, 24.8% more than the same period in 2011, while 1,140 were private limited companies, an increase of 24.9% over July to September last year.

70.7% of the insolvent companies in the third quarter were in the lower turnover bracket (up to two million euros) and were mainly limited companies.

Catalonia, Valencia, Madrid and Andalusia were the regions with the highest number of declarations of bankruptcy in the entire third quarter, accounting for 58.3% of the total. Catalonia filed 345 procedures, Valencia recorded 243, Madrid had 197, and Andalusia, 174.

At the other end, Cinco Dias reported that the regions with the fewest defaults in the third quarter were La Rioja, with 15 procedures, Extremadura, with 18, and Cantabria, with 25.