Insolvencies up amid 'challenging' economy

·1-min read

The number of Australians falling into insolvency has increased marginally amid rising living costs and interest rates.

Formal personal insolvencies in Australia rose from 700 in April to 751 in May, according to monthly data from the Australian Financial Security Authority.

Of those insolvencies, 457 were bankruptcies, 278 were debt agreements, 12 were personal insolvency agreements and four were deceased estates.

Health care and social assistance, construction and other services were the most common employment industries that individuals disclosed on insolvency forms.

Some 138 of those who filed for bankruptcy were involved in a business, down by 24 in April.

While personal insolvencies in May jumped 7.3 per cent on the April figure, they have markedly increased from an average of 1258 per month in 2020 and as high as 2736 in July 2019.

The authority's chief executive, Tim Beresford, said many people were facing financial difficulties in the face of "challenging" economic conditions.

He encouraged those experiencing financial stress to contact the National Debt Helpline for free and confidential assistance or to contact a registered trustee for advice.

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