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On Wednesday, 3 May 2017 the Australian Financial Security Authority ("AFSA") released their personal insolvency activity statistics for the March 2017 quarter.
The March 2017 quarter saw an increase of 7,900 new personal insolvencies. This is an increase of 10.8% compared to the same period last year with all States and Territories recording a rise. Western Australia lead this increase with a record high 928 personal insolvencies which was a 26.9% increase compared to the same period last year.
Debt Agreement Proposals continue to increase as a total number directly proportional to total insolvencies with 3,584 individual agreements filed in the March 2017 quarter. Record highs for these Agreements were recorded in Victoria, Queensland, South Australia and Western Australia with all other States and Territories also recording increases.
Note 1: All the above figures refer to personal administrations under the Bankruptcy Act only and not corporate insolvency
Business-Related Personal Insolvency
The March 2017 quarter saw 16.5% of debtors entering into business-related personal insolvency. This represents an increase of 0.4% compared to the same quarter last year.
The 2 primary reasons for business-related personal insolvency were economic conditions (392 debtors) and excessive use of credit (2,387 debtors).
You can access the full insolvency statistics via the AFSA website here.