The number of corporate insolvencies in Germany is recording a noticeable increase, yet according to industry experts remains within the bounds of economic normalisation. On the occasion of the German Insolvency Administrators Congress 2026 in Berlin, the Association of Insolvency Administrators and Trustees in Germany (VID) took stock of current practice. The professional association warned that existing restructuring instruments must be protected, consumer insolvencies digitalised, and the statutory framework for professional regulation swiftly advanced.
According to data from the local courts, 15,185 corporate insolvencies were filed nationwide from January to July 2026, representing an increase of 6.9 per cent compared to the same period of the previous year. The first half of the year alone accounted for 12,812 proceedings. Among the most severely affected sectors are construction, hospitality, and transport and warehousing. VID Chairman Dr Christoph Niering emphasised that whilst the figures are elevated, there can be no talk of an insolvency wave. Rather, it represents a return to historical normal levels following years of atypically low case numbers, reinforced by the persistently weak economy.
Importance of insolvency benefits and reform of consumer insolvency
The association attaches a central role to insolvency benefits (Insolvenzgeld) for stabilising troubled businesses. The benefit secures employee remuneration for up to three months and provides companies with the necessary room for manoeuvre to maintain operations. In Niering's view, this instrument frequently forms the foundation for successfully continuing operations after filing for insolvency. Any restrictions would diminish restructuring prospects and endanger existing jobs.
In parallel, the VID sees a substantial need for action regarding consumer insolvencies, which total over 70,000 proceedings per year. In the first seven months of 2026, applications already amounted to 46,043 cases. Together with the German Bar Association (DAV), the VID has established a reform commission. The objective is to noticeably relieve courts and administrators through standardised and digital procedures, and to enable those affected to achieve a faster economic fresh start.
Draft legislation for unified professional law
In July 2026, the Federal Ministry of Justice presented a draft bill for statutory regulation of the profession, thereby closing an existing gap in Germany compared with European standards. The draft provides, among other things, for the following key points:
- —Introduction of nationwide admission instead of over 190 decentralised judicial pre-selection lists
- —Mandatory qualification examination for entrants to the profession to ensure uniform standards
- —Establishment of a central register and overarching professional supervision
The VID welcomes the initiative, but calls for improvements. The planned chamber of insolvency administrators must be lean, fully digitalised and organised as genuine self-regulation, whilst supervision over specific proceedings should remain with the competent insolvency courts. Furthermore, the association demands that debtor-in-possession administration (Eigenverwaltung) also be compulsorily integrated into professional law. As proceedings of macroeconomic significance are frequently handled under debtor-in-possession status, the same high qualification requirements must apply to the acting parties here.
