111 bankruptcies in week 43
During the week from 19 to 25 October included (week 43), the business courts pronounced 111 bankruptcies. The decrease in the number of bankruptcies started a few weeks ago intensifies, since 144 bankruptcies were registered for week 42.
These 111 bankruptcies in week 43 resulted in the loss of 122 jobs. This is also a significant decrease compared to the previous week (262).
This is what emerged from the weekly bankruptcy figures produced by Statbel based on the orders of business courts. These interim weekly estimates make it possible to quickly observe the first trends.
Purpose and brief description
Every month, Statbel calculates the bankruptcy figures for the previous month. The figures are published around 15 days after the reference month. On this date, the bankruptcy figures are final. In addition to the monthly figures, Statbel can also make interim weekly estimates. These weekly figures make it possible to quickly observe the first trends. In addition to the figures on the number of bankruptcies, Statbel also always calculates the related job losses. For the job losses, Statbel uses the latest information available from the NSSO.
The bankruptcy statistics produced by Statbel are based on data from the Crossroads Bank of Enterprises (CBE) and the statistical business register. When interpreting the figures, account should be taken of the fact that there is some delay between the cessation of the economic activity and the declaration of bankruptcy by the business court. As a result, an economic impact is only visible in the figures with some delay.
Because of the measures taken during the Covid-19 crisis and the related lockdown, business courts and registries limited their activities until 18 May 2020. Furthermore, until 17 June 2020, a temporary moratorium was in force in order to protect the enterprises that were in good health before 18 March 2020 against the consequences of the Covid-19 crisis.
In the meantime, the business courts have gradually resumed their activities, but for the months of July and August, the judicial summer recess must be taken into account when interpreting the figures. During this period, although the courts remained open, there were fewer hearings. The government measures described above and the summer recess are likely to have a mitigating effect on the number of pronounced bankruptcies from March to August.
There are also many ongoing measures - at federal, regional and local level - to support enterprises in this period of crisis. The deferred payment of the social security contributions (until 15 December 2020) and the annual company contribution (until 31 October 2020) are examples of such measures.
Enterprises subject to the law of 11 August 2017 adding a new Book XX ‘Insolvency of Enterprises’ to the Economic Law Code, and introducing the definitions specific to Book XX and the implementing provisions specific to Book XX in the Book I of the Economic Law Code, as published in the Belgian Official Journal on 11 September 2017. Title VI of Book XX contains the rules on bankruptcy.
Timing of publication
The weekly bankruptcy figures are available three working days after the reference week. As the reference week runs from Monday to Sunday included, Statbel publishes the bankruptcies of the previous week every Wednesday.
A bankruptcy is pronounced as soon as an enterprise meets two conditions:
- The enterprise is no longer able to pay its bills;
- The enterprise does not find any new credits.
A bankruptcy always concerns one enterprise. A legal arrangement in which several persons have set up the same enterprise is counted as one bankruptcy.
Statbel calculates the job losses related to a bankruptcy based on the latest information available from the NSSO.
For the production of the weekly bankruptcy figures, Statbel uses one reference week. This reference week always runs from Monday to Sunday included. The annual results based on the reference week may therefore differ slightly from the annual figures, as the calendar year does not usually start on a Monday.