Risks

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There are many different reasons for a possible inability to meet payment obligations. The most common causes are unforeseen circumstances like unemployment and disability. The financial losses brought about by having to rely on unemployment payments or sickness benefits can be substantial. In the case of unemployment, the average loss of income is 35% (depending on family circumstances), while sickness benefit amounts to only about 60% of previous gross income. The financial consequences become a serious threat when maintaining quality of life is concerned. It is not uncommon to see individuals going bankrupt in these circumstances. The growing number of indebted households and of individual insolvency evidences this.

Individual bankruptcies in Austria since 1995

Source: KSV