Crisis Not the Cause of Most Bankruptcies

BusinessEconomy ♦ Published: May 19, 2011; 19:24 ♦ (Vindobona)

The majority of last year’s insolvencies had company-internal reasons and was not directly related to the economic crisis.

Crisis Not the Cause of Most Bankruptcies / Picture: © Vindobona.org

Common belief that the economic downturn is to blame for most bankruptcies has been debunked by an insolvency expert. The Creditors’ Protection Association of 1870 (KSV) announced today that only 19% of all of last year’s 6,376 business bankruptcies had firm-external and crisis-related grounds.

The organization claimed 44% of all of the companies which went broke in 2010…