Personal insolvency in the March quarter 2016
Total personal insolvencies increased 2.0% in the March quarter 2016 compared to the March quarter 2015. This is the fourth consecutive rise when compared to the same quarter in the previous year. This is the first time four consecutive rises occurred since 2009.
By type of personal insolvency:
- bankruptcies fell by 5.8%
- debt agreements increased by 15.6%
- personal insolvency agreements fell by 9.5%. Queensland and Western Australia accounted for most of the national rise in personal insolvencies in the March quarter 2016 compared to the March quarter 2015. Debt agreements in Western Australia in the March quarter 2016 are the highest on record.
See the personal insolvency statistics for the March quarter 2016.
Debtors with a business-related personal insolvency
In the March quarter 2016, 16.1% of debtors entered a business related personal insolvency. This is a decrease from 17.7% in the December quarter 2015.
In the March quarter 2016:
- economic conditions (410 debtors) was the most common business related cause
- unemployment or loss of income (1,970 debtors) and excessive use of credit (1,908 debtors) were the most common non-business related causes.
See the business and non-business related personal insolvency statistics for the March quarter 2016.
Source: AFSA Media Release 13 April 2016