Jan 2017

Increase in Personal Insolvencies rounds out 2016

On 17 January 2017, the Australian Financial Security Authority (AFSA) released its data on personal insolvencies for the three months to December 2016.

Whilst personal insolvencies rose overall by 0.9% when compared to the same quarter in 2015, some states showed a sharp increase whilst others actually fell dramatically.  WA led the charge with a 26.2% increase, followed by the ACT (14.8%) and QLD with a less impressive 0.7% increase in personal insolvencies.

The significant increases seen in those states ultimately countered the decreases in personal insolvencies recorded in NT (-13.9%), TAS (-6.5%), NSW (-5.1%), SA (-1.4%) and VIC with barely noticeable drop of -0.1%.

Notwithstanding the overall increase in personal insolvencies generally, Bankruptcies were down overall by 4.9% during the December 2016 quarter.  In sharp contrast, debt agreements increased by 9.5% and personal insolvency agreements were up by 4.9%, which does seem to indicate a trend toward less formal personal insolvency arrangements.

For more information of all types of personal insolvencies, please contact ERA Legal.