Personal Insolvency stats – high but not too bad

ITSA has released the provisional Personal Insolvency Statistics for the September 2012 quarter.  You’ll be aware that the corporate insolvency statistics have been bouncing at all time highs, or near to it, each month for over a year.  The Personal Insolvency numbers are not pretty, but are well off the highs from 2008 to 2010.  Some detail below…..

Total personal insolvency activity

Total personal insolvency activity (8,185) increased by 2.16% against the September 2011 quarter (8,012) – an increase of 6.78% on the June 2012 quarter (7,665) but well off the highest ever of 9,712 from September 2009.

Bankruptcies

In the September 2012 quarter, unemployment or loss of income was the most frequently nominated primary cause of bankruptcy.  There were 5,691 new bankruptcies in the September 2012 quarter, an increase of 0.25% against the September 2011 quarter (5,677) and an increase of 6.12% on June 2012 quarter (5,363).

Part IX debt agreements

In the September 2012 quarter, excessive use of credit facilities, including losses on repossessions, high interest payments and pressure selling was the most frequently nominated primary cause of debtors entering debt agreements.  There were 2,417 new debt agreements in the September 2012 quarter, an increase of 8.68% against the September 2011 quarter (2,224) and an increase of 9.17% on the June 2012 quarter (2,214).

Part X arrangements

In the September 2012 quarter, excessive use of credit facilities, including losses on repossessions, high interest payments and pressure selling was the most frequently nominated primary cause of debtors entering personal insolvency agreements.  There were 77 new personal insolvency agreements in the September 2012 quarter, a decrease of 30.63% against the September 2011 quarter (111) and a decrease of 12.50% on the June 2012 quarter (88).