Jones Partner
 

Personal bankruptcies decline for the quarter ended 30 June 2013

16/07/2013 by Bruce Gleeson

The quarterly personal insolvency statistics for the June quarter 2013 show that personal insolvency activity declined by almost 1.4% when compared to the June quarter 2012. Interestingly NSW, QLD, WA and Tasmania all recorded falls in personal insolvency activity whereas Victoria, SA, ACT and Northern Territory all recorded increases.

Bankruptcy numbers (which accounts for approximately 68% of the personal insolvency numbers for the June quarter 2013 ) actually fell by 3.93% when compared to the June quarter 2012. NSW accounted for approximately 32% of bankruptcies across Australia for the June quarter 2013.

Personal Insolvency Agreements (also known as Part X Arrangements) also declined for the quarter by almost 24%. However it should be remembered that they only account for only about 1% of the total personal insolvency activity numbers. Part X Arrangements whilst still a viable option have significantly reduced in number over recent years as creditors tend to take a more active role in ensuring that individuals are held to account within the terms of the Bankruptcy Act. As such the prevalence of Section 73 compositions can tend to be more favorably considered by creditors because the Bankruptcy Trustee has had adequate time to investigate the individuals financial affairs. Therefore creditors can have more confidence if a Section 73 proposal is than put to them during the bankruptcy.

As a Registered Trustee, I regularly advise individuals in financial distress about the options available to them so that they can take control of a very stressful period in their lives.