500 private bankruptcies

Debts are higher in the first half of the year

The air is getting thinner and thinner for some households. KSV1870 expects 500 personal bankruptcies by the end of the year.

(Bild: Erwin Wodicka - [e-mail], stock.adobe.com)

While the number of debt settlement proceedings opened in Vorarlberg remained at the previous year's level, liabilities were significantly higher in the first half of 2024. 

According to KSV1870, 242 debt settlement proceedings were opened in Vorarlberg in the first half of 2024. This is 1.7 percent more than in the previous year. While the number of private bankruptcies has remained almost the same, liabilities have increased by 23.5 percent. As a result, the average debt per debtor has also risen - from 70,000 to 87,000 euros.

Vorarlberg households have been confronted with high financial burdens for some time now. Continued high inflation and the generally high price level are the reason why many people are finding themselves in an increasingly precarious situation. Nevertheless, the number of personal bankruptcies has not increased. "However, we know from the past that personal bankruptcies always occur with a certain delay compared to financial insolvencies," warns Regina Nesensohn, head of the KSV1870 office in Feldkirch.

Financial collapse
Initially, people would live off their savings and reduce consumption to a minimum. "Only when the financial reserves have been used up are personal restrictions sometimes no longer enough and a financial collapse occurs," explains the financial expert. In such a phase, those affected should seek professional help at an early stage - and, if necessary, seek private debt relief in order to get a fresh start. "In a financially strained situation, the most important thing is not to miss the point at which you are no longer in control of your own destiny."

"In a financially tense situation, the most important thing is not to miss the point at which you are no longer in control of your own destiny.

Regina Nesensohn

Number of personal bankruptcies will rise by the end of the year
According to the head of the KSV1870 branch in Feldkirch, the financial situation of many households in Vorarlberg is anything but rosy at the half-year mark. The situation is worsening day by day, especially for those on low incomes. Nesensohn assumes that there will be up to 500 private bankruptcies by the end of the year. This would reach pre-crisis levels (2019: 502 cases).