The Australian Financial Security Authority today released the personal insolvency activity statistics for the September quarter 2017.
Personal insolvency in the September quarter 2017
There were 8,194 new personal insolvencies in the September quarter 2017. This is an increase of 8.0% compared to the September quarter 2016.
By type of personal insolvency:
- bankruptcies increased by 0.1%
- debt agreements increased by 17.5%
- personal insolvency agreements increased by 40.4%. This is the smallest category of personal insolvencies. We changed the date used for reporting purposes in the September quarter 2017, which may have affected this movement.
Quarterly debt agreements continue to increase. This type reached a record high of 3,885 in the September quarter 2017, and increased to 47.4% of total personal insolvencies from 43.6% in the September quarter 2016.
Debtors with a business-related personal insolvency
In the September quarter 2017, 16.1% of debtors entered a business related personal insolvency. This is a small rise from 16.0% in the September quarter 2016.
In the September quarter 2017, where we could identify a specific cause:
- economic conditions (382 debtors) was the most common business related cause
- excessive use of credit (2,727 debtors) was the most common non-business related cause.