The number of bankruptcy petitions is decreasing
The number of bankruptcy petitions is falling.
For the first quarter of 2021, nearly 40% fewer bankruptcy applications were recorded than in the comparable period of 2020. Although such data should inspire optimism, according to experts, they do not show the real scale of the problem. Experts indicate at least several reasons for this state of affairs.
Well, under the Shield 2.0, entrepreneurs whose insolvency arose after mid-March last year as a result of the coronavirus pandemic were released from the obligation to file for bankruptcy.
Other experts indicate that the impact on the data presented is due to an increase in the number of announced restructuring. When trying to save their companies, entrepreneurs more often decide to initiate restructuring rather than bankruptcy proceedings.
Some pay attention to the fact that companies received support in the form of subsidies from successive versions of the anti-crisis shields.
Still others emphasize that the liberalization of the provisions on consumer bankruptcy influenced the development of a scheme whereby an entrepreneur deletes his company from the Central Register and Information on Economic Activity and applies for a declaration of consumer bankruptcy.