Private bankruptcies hit record as Upper Austria firms struggle

More than 1,100 personal bankruptcy proceedings have been opened in Upper Austria this year, while businesses continue to face a weak economy, ORF reports, citing the Credit Protection Association of 1870 (KSV1870).

In the first three quarters of 2026, 599 companies in the state filed for insolvency, equal to more than three business failures per court day. The retail sector was the hardest hit, with 131 insolvencies, followed by construction, accommodation and hospitality.

About 45 percent of company insolvency proceedings were not opened because there were insufficient assets to cover the costs of the proceedings. The KSV1870 said a full-year forecast was currently possible only to a limited extent, but the 2025 total of 842 company insolvencies was unlikely to be reached.

Personal bankruptcies, by contrast, rose sharply. An estimated 1,121 debt adjustment proceedings have been opened in Upper Austria this year, 15 percent more than in 2025 and the highest figure recorded so far.

The KSV1870 attributed the increase mainly to a rise in applications before the option of completing debt relief after three years expired in mid-July. Preliminary liabilities in personal bankruptcies rose 27.9 percent to 156 million euros. That amounted to an average of about 139,000 euros per debtor, around 14,000 euros more than a year earlier.