The causes of business related and non-business related personal insolvencies.
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This zip file contains statistics on causes of personal insolvency published by AFSA for the financial year 2016–17. Individual links to all tables packaged in the zip file are provided on this page. Some data cited in associated commentary (related to age, sex and state or territory of residence of debtors) are not included in this zip file.
Non-business related causes of personal insolvencies
Main non-business related cause of personal insolvency | Number of insolvent debtors in 2015–16 | Number of insolvent debtors in 2016–17 |
---|---|---|
Excessive use of credit | 7,697 | 8,870 |
Unemployment or loss of income | 8,336 | 8,035 |
Domestic discord or relationship breakdown | 3,083 | 3,222 |
Ill health | 1,882 | 1,830 |
Gambling or speculation | 542 | 525 |
Adverse legal action | 500 | 386 |
Liabilities due to guarantees | 293 | 232 |
Not stated | 376 | 565 |
Other non-business reason | 1,760 | 1,560 |
Total | 24,469 | 25,225 |
Business related causes of personal insolvencies
Main business related cause of personal insolvency | Number of insolvent debtors in 2015–16 | Number of insolvent debtors in 2016–17 |
---|---|---|
Economic conditions | 1,921 | 1,779 |
Personal reasons, including ill health | 325 | 471 |
Excessive drawings | 334 | 310 |
Lack of business ability | 256 | 283 |
Excessive interest | 169 | 224 |
Lack of capital | 203 | 155 |
Failure to keep proper books | 158 | 113 |
Inability to collect debts | 111 | 107 |
Gambling or speculation | 38 | 56 |
Seasonal conditions | 65 | 29 |
Other business reason | 2,054 | 2,143 |
Total | 5,634 | 5,670 |
Most personal insolvencies are not business related
In 2016–17, 18.4% of debtors entered a personal insolvency due to business related causes. Since 2007–08, the proportion of debtors entering a personal insolvency due to business related causes has fluctuated between:
- a peak of 21.3% of debtors in 2012–13; and
- a low of 12.5% of debtors in 2008–09.
Commentary
- Causes of business related personal insolvencies
- Causes of non-business related personal insolvencies
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