In the fourth quarter of 2024

Number of bankruptcy, insolvency, and enterprise recovery incoming cases registered in the first-instance courts of the Madeira District increased both on a quarterly and year-on-year basis

According to information provided by the Directorate-General for Justice Policy (DGPJ), the number of incoming cases filed in the Madeira District related to bankruptcy, insolvency, and recovery of enterprises increased from 37 in the third quarter of 2024 to 54 cases in the fourth quarter of 2024 (+45.9%). Compared to the same quarter of the previous year (47 cases), a rise of 14.9% was observed.

In the fourth quarter of 2024, a total of 60 cases were closed (+20.0% compared to the fourth quarter of 2023), 54 (90.0%) of which ended in bankruptcy or insolvency. This number of bankruptcies/insolvencies was higher than that recorded in the previous quarter (33) and the same quarter last year (45).

Regarding the type of persons involved in the declared bankruptcies/insolvencies, the proportion of natural persons in the total number of cases exceeded that of legal persons, representing 90.7% of the total. In fact, out of the 54 bankruptcies/insolvencies declared in this quarter, 49 were of natural persons and 5 were of legal persons.

In a year-over-year analysis, the number of incoming cases in 2024 showed a decrease from the previous year

The annual data indicates that both the number of incoming (175) and closed (177) cases during the year indicated negative trends, with a corresponding decline of 22.6 and 23.0%, respectively. It is noteworthy that the number of closed cases exceeded the incoming cases, which resulted in a reduction of 8.3% in pending cases.

Regarding the declared bankruptcies/insolvencies, a decrease was observed from 206 in 2023 to 162 in 2024, amounting to a reduction of 21.4%. In terms of the type of person involved in these declared bankruptcies/insolvencies, the proportion of natural persons was 84.6% in 2024, compared to 15.4% for legal persons.

The data requested to DGPJ by the Regional Directorate of Statistics of Madeira (DREM), regarding the value ranges of the cases with declared bankruptcy/insolvency, revealed that the “10,000 euros to 49,999 euros” class held the largest proportion, accounting for 34.0% of the total, followed by the “5,000 euros to 9,999 euros” class at 31.5%. The other two classes, “up to 4,999 euros” and “50,000 euros or more”, were less significant, collectively making up 34.6% of the total cases. Compared to 2023, there was an increase in the average value of the cases, as the most common range that year was 'Between 5,000 euros and 9,999 euros', accounting for 37.4%.

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