Over the last five years, individual and self-employed insolvencies have experienced a remarkable increase of 1,035%. This phenomenon has further intensified in the first quarter of this year, with a total of 6,673 insolvencies filed, compared to 588 insolvencies in the same period in 2019.
Although there is still no official data on the exact percentage of cases seeking debt forgiveness, economists at the Registry of Forensic Economists (REFOR) point out that this is the main reason behind the majority of bankruptcies filed by individuals. Seeking debt forgiveness has become a crucial measure for those facing significant financial difficulties.
In addition, economists are urgently calling on the Administration to consider writing off public debt in excess of 20,000 euros. This request reflects the seriousness of the economic situation for many individuals and small businessmen, who find in the insolvency proceedings a way to alleviate their unsustainable financial burden.
The increase in bankruptcies of individuals and the self-employed also highlights the need for policies and measures that support restructuring and individual economic recovery. It is essential that both authorities and financial institutions understand and respond appropriately to these challenges, ensuring a fair and equitable process for all involved.
The current situation underscores the importance of responsible financial planning and the need for adequate resources to deal with personal economic crises. In addition, the debate over public debt forgiveness raises fundamental questions about long-term financial sustainability and the economic well-being of society as a whole.
The REFOR team will continue to monitor these developments and provide critical analysis to better understand the dynamics behind the increase in individual and self-employed bankruptcies. It is crucial to continue exploring effective solutions that support financial stability and promote an inclusive and sustainable economic recovery.
This significant increase in bankruptcies of individuals and the self-employed reminds us of the importance of economic policies that are sensitive to individual needs and challenges, working towards solutions that foster a more resilient and fairer financial environment for all.
