Personal insolvency in the June quarter 2016
Total personal insolvencies increased 13.7% in the June quarter 2016 compared to the June quarter 2015. This is the largest rise since the March quarter 2009, when compared to the same quarter in the previous year.
By type of personal insolvency:
- bankruptcies increased by 7.0%
- debt agreements increased by 24.3%
- personal insolvency agreements were stable (0.0%).
Personal insolvencies rose in all states and territories in the June quarter 2016 compared to the June quarter 2015.
Debt agreements in the June quarter 2016 are the highest on record, with 3,329 debt agreements. The previous record was in the September quarter 2015 (3,081 debt agreements).
Debt agreements reached record highs in New South Wales, Queensland and Western Australia in the June quarter 2016.
Debtors with a business-related personal insolvency
In the June quarter 2016, 17.5% of debtors entered a business related personal insolvency. This is a rise from 16.1% in the March quarter 2016 and from 16.3% in the June quarter 2015.
In the June quarter 2016:
- economic conditions (465 debtors) was the most common business related cause
- unemployment or loss of income (2,138 debtors) and excessive use of credit (2,132 debtors) were the most common non-business related causes.