Delve into financial hardship - Consultative facilities become essential - Proposals have been put forward by the Commission.
In Saxony-Anhalt, Germany, the number of insolvencies has been on the rise, mirroring a broader trend across the country. Elke Eigendorf, head of the debt counseling and insolvency advice center at the Consumer Advice Center, attributes this increase to various factors such as illness, unemployment, divorce, and rising living costs.
Insolvencies of both individuals and companies are at their highest levels since 2005, with record values in the second quarter of 2025 compared to previous quarters. Despite a slight economic pickup in the first half of 2025 and projections of moderate growth in 2025 and 2026, insolvencies remain elevated.
Key factors contributing to this rise include the global economic slowdown and geopolitical tensions, which create unstable conditions for businesses and private households. Germany’s increasing public debt and fiscal challenges, including pressures on social funds like health and pension insurance, add to financial strain across the economy. Political uncertainty and lack of strong reform momentum hinder decisive action to stabilize economic conditions and address underlying causes of insolvency increases.
The employment sector is also affected, with the number of employees affected by insolvencies continuing to rise, indicating worsening impacts on labor. Although the number of insolvencies slightly dropped in May 2025, the overall trend remains concerning.
The Caritas in the Diocese of Magdeburg operates two insolvency counseling centers in Halberstadt and Wittenberg, providing assistance to those struggling with debt. The Consumer Advice Center Saxony-Anhalt, on the other hand, handled thousands of counseling cases per year, with around 770 appointments for insolvency and social counseling in 2024 alone.
Despite the increasing number of inquiries, personnel capacities remain limited or constant. Waiting times have increased noticeably in recent years in AWO counseling centers due to more complex cases. In urgent cases of need, such as imminent eviction, energy cutoff, or lack of health insurance, special appointments outside regular counseling hours are offered if possible.
In the first quarter of 2025, the number of insolvency applications in Saxony-Anhalt increased by about 20% compared to the previous year, with 856 insolvency applications. The waiting time for a first counseling appointment at Caritas is currently 4 to 5 weeks, while at AWO centers, those seeking advice have to wait an average of around 8 to 10 weeks, with waiting times of up to six months in individual cases.
Over-indebted consumers have the possibility to free themselves from their debt mountain within three years through private or consumer insolvency. Stefan Zowislo, a spokesman for the Caritas, advises those affected to come early for counseling due to the stigmatized nature of the topic and the experienced staff's ability to help.
As an East German state, Saxony-Anhalt likely mirrors the broader eastern Germany insolvency trends projected by the Halle Institute for Economic Research (IWH), which foresees similar moderate growth but continued high insolvency rates. Insolvency increases thus appear driven by a combination of lingering economic challenges, fiscal pressures, and structural constraints within Germany's economy and governance, all of which impact both companies and private households in Saxony-Anhalt as part of the national pattern.
In an effort to alleviate rising insolvencies in Saxony-Anhalt, some initiatives have been proposed. For instance, community policies could prioritize vocational training to ease personal-finance issues and foster business growth for those affected by insolvency. Moreover, financial institutions might consider offering low-interest loans for vocational training programs to support individuals looking to re-establish themselves within the employment sector.
