Bankruptcy is not something that many people want to hear about. In 2017, the words bankruptcy and insolvency still have negative connotations that many people fear. But, this fear often comes from a place of misunderstanding. Although bankruptcy may seem like a complete dead end to many, the fact of the matter is, bankruptcy (both personal and business) can often lead to a clean slate and a fresh start for many.
But, how many people and business in Australia are actually looking at bankruptcy? In May of 2017 the Australian Financial Security Authority (AFSA) released bankruptcy figures for the March Quarter 2017. The truth is, the numbers are rising Australia wide. The numbers are clear to see that bankruptcy is an avenue that many people are looking at choosing in order to achieve financial freedom. Although bankruptcy is often not spoken of, the numbers speak for themselves. More and more people and business-owners are declaring bankruptcy in order to move on from financial problems, rebuild their lives and find financial success in the future.
Each State and/or Territory have some interesting figures for the 2017 March quarter. All figures are compared to the statistics from the 2016 December quarter.
New South Wales
One of the biggest growing states, from both a residential and business perspective, isn’t void of bankruptcy increases. However, there was some decreases in numbers in the regional New South Wales area. What this means for the future of business in N.S.W is yet to be known. However, time will tell if business gains momentum in Sydney and New South Wales.
Compared to the 2016 December quarter, bankruptcy numbers in the Sydney region are as follows:
The amount of debtors increased by 11.0% with the main contributor of the increase being Wyong.
For business related insolvency, the number of debtors rose to 8.6%. The main contributors of this number were wyong and Penrith.
Rest of New South Wales
Just like the Sydney region, there was an increase in numbers for the rest of New South Wales for personal insolvency. However, business numbers showed a different story.
Debtor numbers rose by 1.9% with the main contributor to these numbers from the Lachlan Valley.
For business related personal insolvency, these numbers fell by 10.7% with the main contributor to the fall being Coffs Harbour.
Australian Capital Territory
Numbers looked similar in the Australian Capital Territory (ACT).
When looking at the number of debtors, this number increased 26.9% with the leading contributor to the growth being Belconnen.
The number of debtors who entered a business related personal insolvency rose by 84.6% (Although this seems alarmingly high, this was an increase from 13 debtors to 24).
Melbourne also saw an increase in their overall numbers statewide. Breaking it down, we can see Melbourne had a higher increase than the rest of the state.
In Melbourne, the amount of debtors increased 13.4% with the primary contributor to the increase being Whittlesea – Wallan.
In business, the amount of debtors who entered a business associated personal insolvency increased by 5.7% with the main contributor to this number coming from Mornington Peninsula.
Rest of Victoria
For the rest of the state, the amount of debtors went up 10.8% with the major contributor to the gain being in Glenelg – Southern Grampians.
For business, the quantity of debtors who entered a business associated personal insolvency went up 8.3%, with the main contributor to the rise seen in Bendigo.
Brisbane has been seen as a growing city with many business opportunities growing over the past decade. However, we have still seen an increase in insolvency numbers within the greater Brisbane area, both for personal events and business.
The quantity of debtors increased by 19.3% with the primary contributor to the growth was in the inner Ipswich area.
The quantity of debtors who entered a business associated personal insolvency agreement grew 13.9% the primary contributor to the rise being Springfield – Redbank.
Rest of Queensland
Looking at the numbers, the quantity of debtors raised 9.4% with the main contributor to the gain being within the Caloundra region.
The number of debtors who went into a business related personal insolvency decreased to 2.1%. The main contributor to the fall was Rockhampton.
South Australia is a growing state, but the majority of the population can be found in the Greater Adelaide area, which makes up 78% of the state’s population according to the Australian Bureau of Statistics. However, the statistics show there are a number of increases in insolvency across the whole state.
For the Greater Adelaide region, the amount of debtors grew 12.6% showing the primary contributor to the escalation as Marion.
For business, the number of debtors who entered into a business associated personal insolvency rose 9.8%.
Rest of South Australia
The quantity of debtors grew 51.0% with the main contributor to the escalation being Murray and Mallee
There was an increase of 25 debtors who entered into a business associated personal insolvency, which was an increase from 12.
The Northern Territory is also receiving the same trends in bankruptcy compared to the rest of the country.
The amount of debtors rose 18.8% in Greater Darwin.
For the rest of the N.T, AFSA saw 18 debtors, a reduction from 20 from the December 2016 quarter.
In the December quarter of 2016, there were 16 debtors entering a business related personal insolvency, however this quarter, the number has indeed dropped to 13.
Western Australia has shown some great potential for growth over the last decade and is known as one of the top mining areas in the country.
The number of debtors entering a business related personal insolvency actually remained the same for the quarter at 155 debtors.
However, the number of debtors rose to 11.6% with the main contributor to the increase being Cockburn.
Rest of Western Australia
Albany was the main contributor to the increase of debtors in the region, increasing to 5.3%
The amount of debtors who entered into a business associated personal insolvency raised to 9.1%, which was contributed mainly by Bunbury.
Tasmania was one of the states that didn’t see an increase in personal insolvency numbers generally. However, there were still some increasing numbers when it came down to business.
Personal insolvency numbers dropped to 7.2% overall in the Greater Hobart region, with Brighton being the main area for this contribution.
But, when looking at business related person insolvency, the number of debtors increased by 35.5% for the rest of Tasmania. Launceston was the biggest contributor to this increase.
Business related personal insolvency numbers in Tasmania remained unchanged at 28 debtors.
The graph above shows a quick overview of the number of debtors across all states. As we can see, Queensland is in front with the highest number of debtors for the March quarter of 2017.
These numbers and figures may indicate issues across Australia, such as many businesses and individuals struggling to make ends meet. However, it is still hard to determine the real causes and events that have led to these increases.
For more information on personal insolvency or advice on your business financial needs, contact the friendly team at Bankruptcy Experts today on 1300 795 575 or visit https://www.bankruptcymelbourne.com/