Insolvency – Opportunity for restructuring and fresh start
Increase in Insolvency Proceedings in Portugal
In recent months, Portugal has seen a significant increase in insolvency proceedings, reflecting global and local economic challenges. According to recent data, there was a 25% growth in insolvency proceedings in the first half of 2023, compared to the same period of the previous year. This increase is particularly notable in two main sectors: commerce, with an increase of 30%, and services, with 20%.
The COVID-19 pandemic, changes in the job market and ongoing economic difficulties are key factors contributing to this trend. Insolvency, a legal condition that occurs when an individual or company is unable to pay off its debts, has become a more common reality due to increased financial pressure.
Consequences and Perspectives
This growth in insolvency proceedings has profound implications for the economy, affecting investor confidence and the business environment. However, it is important to note that support measures, such as financial assistance programs and loan moratoriums, have been implemented to mitigate the economic impact.
Looking ahead, it is crucial to understand the causes of this increase to develop effective strategies that can help prevent future financial crises. Economic recovery is a priority, with hopes of a gradual decrease in insolvency proceedings as the economic situation improves.
Insolvency as a Solution
Although often viewed in a negative light, insolvency can, in certain circumstances, represent an opportunity for restructuring and a fresh start. For many companies and families, facing an insolvency process is not the end, but rather a necessary step to resolve unsustainable financial problems. This legal process allows for debt reorganization and, in some cases, the possibility of a fresh start, free from previous pressures and obligations. Recognizing insolvency as a viable resolution tool can be crucial to regaining financial stability and building a solid foundation for the future.
