Personal insolvency in the December quarter 2015
Total personal insolvencies increased 1.5% in the December quarter 2015 compared to the December quarter 2014. This is the third consecutive rise when compared to the same quarter in the previous year. Although these rises are relatively small, the last time three consecutive rises occurred was in 2009. There were rises in all quarters in 2009 and all of these were larger than in 2015.
By type of personal insolvency:
- bankruptcies were stable (0.0%)
- debt agreements increased by 4.4%
- personal insolvency agreements fell by 24.1%.
Queensland accounted for most of the national rise in personal insolvencies in the December quarter 2015 compared to the December quarter 2014.
Debt agreements in the Northern Territory in the December quarter 2015 are the highest on record.
Debtors with a business-related personal insolvency
In the December quarter 2015, 17.7% of debtors entered a business related personal insolvency. This is a rise from 17.4% in the September quarter 2015.
In the December quarter 2015:
- economic conditions was the most common business related cause (419 debtors)
- unemployment (1,947 debtors) and excessive use of credit (1,645) were the most common non-business related causes.