Tuesday, 13 January 2026
Courts in the Czech Republic declared bankruptcy for 6,213 entrepreneurs in 2025, marking a 16% increase compared with the previous year and the highest annual total since 2021, according to a new analysis by the Czech Credit Bureau.
The number of insolvency rulings rose by 863 cases year on year, while courts accepted 6,568 bankruptcy petitions, an increase of 12% compared with 2024. Despite the acceleration, the total number of bankruptcies remained below levels recorded during the peak pandemic period in 2020.
Analysts note that the pace of growth in business insolvencies more than doubled compared with the end of 2024, reversing the downward trend observed between 2021 and 2023. At the same time, the broader financial position of entrepreneurs has shown mixed signals. While business lending expanded sharply toward the end of the year, deposits held by entrepreneurs continued to significantly exceed outstanding loans, and the proportion of non-performing loans declined further.
Another structural factor influencing insolvency statistics is the continued rise in the number of registered entrepreneurs, which reached its highest growth rate in the past six years. In addition, the vast majority of insolvency cases involving sole traders—around 97%—ended with the approval of debt relief, allowing individuals to continue operating their businesses under personal bankruptcy arrangements.
On average, Czech courts declared bankruptcy for 518 entrepreneurs per month in 2025, up from 446 per month in 2024. Monthly bankruptcy filings also increased, with courts receiving an average of 547 applications per month, compared with 488 a year earlier.
As in the previous year, the Moravian-Silesian Region recorded the highest number of entrepreneur bankruptcies, with 829 cases, followed by the Central Bohemian Region (737) and Prague (724). Insolvency numbers rose in every region, although the intensity of growth varied significantly.
The sharpest year-on-year increase was recorded in the Karlovy Vary Region, where bankruptcies rose by 37%. Substantial growth was also reported in the South Bohemian Region (27%) and the Liberec Region (25%). By contrast, the Moravian-Silesian Region showed the slowest growth rate despite having the highest absolute number of cases.
Measured relative to the number of active entrepreneurs, the risk of bankruptcy was highest in the Karlovy Vary Region, where 90 bankruptcies were recorded per 10,000 entrepreneurs. Similar levels were observed in the Liberec and Ústí Regions. Prague, on the other hand, recorded the lowest relative insolvency rate, with 39 bankruptcies per 10,000 entrepreneurs in 2025.
By sector, construction remained the most exposed to business failure, accounting for 1,502 bankruptcies during the year. This was followed by wholesale and retail trade, including vehicle repair, with 1,014 cases, and manufacturing, where courts declared 833 bankruptcies.
Among major industries, the fastest growth in insolvencies was recorded in administrative and support service activities, where bankruptcies increased by 34% year on year.
Overall, the findings suggest that while the Czech business environment remains relatively resilient, pressure on smaller entrepreneurs intensified in 2025, particularly in construction-related and service-oriented sectors, as cost pressures and financing conditions continued to challenge business sustainability.
Source: CTK
