Company and Family Bankruptcies Register First Decline Since 2010

A total of 7,038 families and companies in Spain declared bankruptcy during 2014, due to their inability to meet their payments and debts. According to the Bankruptcy Proceedings Statistics for the fourth quarter of 2014, published by the National Statistics Institute last week, this represents a decrease of 29.2% compared with 2013, and is the first time in four years that the number of proceedings has fallen.

In 2013 the number of proceedings registered increased by 6.5%, while in 2012 and 2011 they rose by 32% and 15%, respectively. In 2010, in contrast, the number of debtors fell by around 7%.

In the fourth quarter of last year, a total of 1,677 bankruptcy proceedings were recorded, which is 28.8% less than in the same period of 2013, and 19.7% less than in the previous quarter, placing this last figure as the second lowest rate since 2010.

In 2014, family bankruptcies fell by 18.6%, to a total of 646, while the number of company bankruptcies fell by 30.1%, to a total of 6,392. Of these proceedings, 6,581 were voluntary (30.3% less than 2013), and the other 457 necessary (7.9% less than the previous year).

El Economista reported that more than half of the companies which initiated bankruptcy proceedings last year (58.9%) belonged to the construction, trade and industry and energy sectors. Those dedicated to administrative activities, construction and trade showed the biggest declines, with negative rates of -40.2%, -38.6% and -24.7%, respectively, while the lowest decline was in the hospitality sector, at -7.3%.

Catalonia was the region which registered the highest number of bankruptcy proceedings in 2014 (1,484), followed by Madrid (1,060) and Valencia (950). Together these three regions accounted for 49.6% of all the debtors processed. In contrast, the region of Cantabria recorded the lowest number of proceedings, with 63.