Bankruptcy filings tripled in the Canary Islands in 2023

The Commercial Courts of Canary Islands registered 2,195 bankruptcy petitions last year, three times more than in 2022, when 704 were recorded (211.8% more), according to data released this Wednesday by the General Council of the Judiciary (CGPJ).

The report on the 'Effects of the economic crisis on the judicial bodies' reveals that the growth of the old bankruptcies in Spain in the Commercial Courts was 115.4%, which means that in the islands they increased 95 points above the average and that the Canary Islands was the second community with the highest percentage increase in bankruptcy petitions, after Murcia with 249.8%.

In a statement, the press office of the Superior Court of Justice of the Canary Islands has indicated that of the 2,195 bankruptcies filed in the islands, 47 were at the request of business people, 130 of companies and societies and 2,018 of non-business natural persons, that is, 91.9%, which are what have motivated the increase in the procedures, as well as the fact that these bankruptcies in 2023 were no longer resolved by the courts of First Instance.

Always according to the statistical study of the CGPJ, during the past year a total of 1,286 bankruptcies were declared in the community, almost six times more (+498.1%) than in the previous year (215); agreements were resolved in nine (40% less than in the previous year, when 15 had been channeled) and 92 bankruptcies were liquidated, 18.6% less than the previous year (113).

With regard to the so-called consecutive bankruptcies, 360 were declared last year, triple (242% more) than in 2022, when 105 had been recorded.

These bankruptcies affect natural persons, entrepreneurs or not, in a situation of insolvency and legal persons, with liabilities of less than five million euros, assets and rights with a value of less than five million euros, and less than 50 creditors, who must have tried and failed to approve an out-of-court payment agreement, once the procedure has begun; or, once it has been approved, that the debtor has not been able to comply with it, the note clarifies.