Bankruptcies Falling Globally
By Marzanna Sobaniec, Penteris
Bankruptcy filings often historically track economic conditions: they fall in better times and rise in lean times. According to Harvard Business Review, this trend has been bucked during the Covid-19 pandemic. A team of researchers collected data on all US bankruptcies filed from 1 January to 31 August 2020 and those filed in a comparative period in 2019. The data showed that overall, bankruptcies have dropped by 27% year on year.
This new 'trend' seems to be also present in Poland where the number of bankruptcies throughout 2020 was similar to that recorded in 2019. The most visible differences were seen after the first lockdown (in Q2 2020 there were 19.8% more bankruptcies than in 2019), while fall and winter reversed the trend, with the lowest bankruptcy level in many years in November (in Q4 2020, there was a 33.3% decrease in bankruptcies compared to Q4 2019).
What is more, state aid may have kept some businesses afloat, whilst the pandemic caused many courts in both countries to shut down making it harder to file for bankruptcy. If we have learnt anything at all during the pandemic it is the fact that the global concept of 'normal' no longer holds regardless of our industry, even in an area as seemingly tangible as bankuptcy.
Marzanna SobaniecGGI member firm
Law Firm Services
T: +48 22 257 83 00
Penteris is a law firm combining in-depth expertise, robust advice, and a pan-regional reach. We boast a team of seasoned dispute resolution specialists under one roof. Our strong project management skills are particularly important in case of complex, inter-connected disputes. We ensure comprehensive project management and cross-coordination of all related cases, in addition to court representation.
Marzanna Sobaniec is a Polish attorney-at-law, Partner of the Dispute Resolution Practice at Penteris. Handling multi-jurisdiction cases ranging from Real Estate, Energy, Banking, FMCG, and Construction, she works with diverse businesses, both from the private and public sectors. Marzanna’s broad experience in litigation, arbitration and mediation sees her find the most effective dispute strategies and business solutions for her clients.
Published: March 2021 l Photo: TTstudio - stock.adobe.com