
Personal bankruptcies in Austria are predominantly male (61%) and often follow self-employment, according to the Credit Protection Association (KSV). As men are more likely to be self-employed than women, their average debt is higher, with men owing an average of €138,000 compared to €77,000 for women.
This figure has risen since 2023, with the overall average debt increasing by €9,000 to €113,000. Women’s average debt rose by €8,000, while men’s increased by €10,000.
“The significant gap in debt levels between men and women is also due to the higher rate of self-employment among men. Often, entrepreneurial debts are included, which is why the debts are much higher,” explained KSV expert Karl-Heinz Götze.
When only “genuine personal or consumer debts” are considered, the average debt is significantly lower at €66,000. These cases do not stem from previous self-employment. Breaking it down by gender, men’s debts amount to €74,000, while women’s debts stand at €53,000.
Reasons for Personal Bankruptcy
In terms of reasons for personal bankruptcy, former self-employment is a far more common cause for men (32%) than women (18%). However, overestimating one’s economic capabilities is a more frequent issue for women (24%) than for men (20%), according to the KSV survey. It is also noteworthy that more women (8%) end up in personal bankruptcy due to liability assumptions than men (2%).
Such debts often arise from loans taken to finance a shared home. “Many women sign guarantees even though they often have little or no direct influence on the repayment of the loan. If the relationship ends, many women are no longer able to meet their financial obligations and end up in personal bankruptcy,” Götze said.
The KSV continues to call for greater financial education and stresses that the opportunity for individuals to discharge their debts within three years should not be extended.
Criticism of Personal Bankruptcy Rules
Personal bankruptcy rules have been revised several times in recent years.
Creditors’ advocates criticise these changes, arguing they have “mainly been at the expense of creditors.” In the 2017 insolvency law reform, the debt discharge period was reduced from seven to five years, and the minimum repayment rate of 10% was completely removed. “As a result, single-digit insolvency recovery rates became the norm, and financial returns to creditors dropped significantly,” the KSV criticised.
A further reform in 2021 allowed both former self-employed individuals and private debtors to discharge their debts with a repayment plan as part of an asset seizure procedure within three years (down from five years).
Although the five-year asset seizure plan still exists, it has become less common in practice, according to the KSV. “The result of the shortened discharge period was a further reduction in recovery rates.” The KSV advocates a return to the five-year debt discharge period.