The Czech Republic has witnessed a significant uptick in personal bankruptcies, with 4,082 cases reported in the first quarter of 2025, marking a 12% increase compared to the same period last year. This represents the highest number recorded in the past five years.
According to CRIF analyst Věra Kameníčková, March alone saw 1,460 bankruptcies, exceeding the previous year’s monthly average by 315 cases. The upward trend has been consistent for five consecutive months, with February and January recording 1,368 and 1,254 cases respectively.
The surge can be attributed to recent changes in insolvency law that came into effect in the latter half of 2024, which relaxed bankruptcy declaration requirements. Adding to this, consumer loans are growing faster than deposits, and there’s an increasing rate of non-performing consumer loans, indicating declining payment discipline among households.
Regional analysis shows the Moravian-Silesian region leading with 668 cases, followed by the Ústí region with 550, and the Central Bohemian region with 415 cases. Prague has seen a particularly dramatic increase, with bankruptcy cases rising by 40% year-over-year.
When adjusted for population size, the Karlovy Vary, Moravian-Silesian, and Ústí regions show the highest risk of bankruptcy per 10,000 residents.