Commentary

Read more about debtors with a business related personal insolvency in the September quarter 2017.

Break in series – personal insolvency statistics

From the September quarter 2017, geographic coding of personal insolvency statistics follows a new method. There is also a minor change in the reporting date used for personal insolvency agreements from this quarter. These changes are breaks in series for our statistical publications. For further details see the Guide to business and non-business personal insolvency statistics.

Proportion of debtors with a business related personal insolvency in Australia*

* From the September quarter 2017, geographic coding of personal insolvency statistics follows a new method.

Key points

  • In the September quarter 2017, 16.1% of new debtors entered a business related personal insolvency.  This is a small rise from 16.0% in the June quarter 2017.
  • 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.

Proportion of debtors with a business related personal insolvency

In the September quarter 2017, 16.1% of new debtors entered a business related personal insolvency. This is a small rise from 16.0% in the June quarter 2017. By type of insolvency:

  • 24.6% of bankrupts entered a business related bankruptcy. This is a rise from 24.1% in the June quarter 2017.
  • 6.5% of debt agreement debtors entered a business related debt agreement. This is a fall from 6.8% in the June quarter 2017.
  • 22.7% of personal insolvency agreement debtors entered a business related personal insolvency agreement. This is a fall from 35.0% in the June quarter 2017.

Top reasons for bankrupts entering bankruptcies

Business related bankruptcies

When we could identify a specific reason, the most common reasons for entering business related bankruptcies in the September quarter 2017 were:

  • economic conditions (271 debtors)
  • excessive drawings (68 debtors)
  • personal reasons including ill health (59 debtors).

Non-business related bankruptcies or not stated

When we could identify a specific reason, the most common reasons for entering non-business related bankruptcies in the September quarter 2017 were:

  • unemployment or loss of income (1,041 bankrupts)
  • excessive use of credit (713 bankrupts)
  • domestic discord or relationship breakdown (406 bankrupts).

Top reasons for debtors entering debt agreements

Business related debt agreements

When we could identify a specific reason, the most common reasons for entering business related debt agreements in the September quarter 2017 were:

  • economic conditions (108 debtors)
  • excessive interest (46 debtors)
  • personal reasons, including ill health (31 debtors).

Non-business related debt agreements or not stated

When we could identify a specific reason, the most common reasons for entering non-business related debt agreements in the September quarter 2017 were:

  • excessive use of credit (1,984 debtors)
  • unemployment or loss of income (930 debtors)
  • domestic discord or relationship breakdown (486 debtors).

Top reasons for debtors entering personal insolvency agreements

Business related personal insolvency agreements

When we could identify a specific reason, the most common reason for entering business related personal insolvency agreements in the September quarter 2017 was economic conditions (three debtors).

Non-business related personal insolvency agreements or not stated

When we could identify a specific reason, the most common reasons for entering non-business related personal insolvency agreements in the September quarter 2017 were:

  • excessive use of credit (30 debtors)
  • unemployment or loss of income (11 debtors)
  • domestic discord or relationship breakdown (5 debtors).