Personal bankruptcies in the Czech Republic rise by 7% in 2024, marking a trend reversal

In 2024, the Czech Republic saw 13,751 personal bankruptcies, reflecting a 7% year-on-year increase and signaling a shift after four consecutive years of decline. This data, analyzed by the portal www.informaceofirmach.cz and provided by CRIF - Czech Credit Bureau, highlights significant changes in the country’s financial landscape. Alongside the rise in bankruptcies, 14,883 insolvency petitions were filed, representing a 10% increase compared to the previous year.

December alone accounted for 1,219 personal bankruptcies and 1,257 insolvency petitions, demonstrating a steady monthly trend of 1,146 bankruptcies and 1,240 petitions throughout the year. Despite the rise, the total number remains 4,763 fewer than in 2019, though analysts predict further increases in 2025.

Impact of Legislative Changes and Financial Challenges
The October 2024 amendment to the Insolvency Act has made personal bankruptcy more accessible to individuals in financial distress. However, CRIF analyst Věra Kameníčková points to declining repayment morale and rising consumer credit volumes as contributing factors to the increase.

“The amended Insolvency Act has eased conditions, enabling more people to address financial difficulties. However, this comes amid worsening repayment discipline and higher borrowing levels, adding pressure to the system,” Kameníčková explained.

Regional Breakdown of Personal Bankruptcies
The Moravian-Silesian Region recorded the highest number of bankruptcies in 2024, with 2,176 cases, followed by the Ústí nad Labem Region (1,934) and the Central Bohemian Region (1,493). In contrast, the Vysočina Region had the fewest, with only 436 cases, alongside the Karlovy Vary Region (516) and the Zlín Region (528).

Year-on-year increases were most notable in the Ústí nad Labem Region (+14%) and the South Bohemian Region (+12%). The Vysočina Region and Karlovy Vary Region saw the smallest increases, at 1% and 4%, respectively.

Bankruptcy Risk by Region
The Ústí nad Labem Region remains the most bankruptcy-prone area, with 28 bankruptcies per 10,000 residents aged 15 and above, followed by the Moravian-Silesian Region (22 per 10,000) and the Karlovy Vary Region (21 per 10,000). In contrast, Prague had the lowest bankruptcy rate, with just 9 bankruptcies per 10,000 residents, followed by the Vysočina Region (10) and the Zlín Region (11). The national average stood at 15 bankruptcies per 10,000 residents, up slightly from the previous year.

With rising insolvency petitions and the ongoing effects of legislative changes, experts anticipate a continued increase in personal bankruptcies in 2025. The data underscores growing financial pressures on Czech households, particularly in regions with historically higher bankruptcy risks.

Source: CRIF and CTK