While there has been a substantial rise in business collapses, new data suggests they are not causing a spike in personal insolvencies.
Australian Financial Security Authority (AFSA) has released details of the root causes of personal insolvencies in Australia last financial year, and noted that most personal insolvencies are not business related.
In [financial year] 2016-17, 82 per cent of debtors entering personal insolvency did so due to non-business related causes, it noted.
The most common non-business related causes were: excessive use of credit (8,870 debtors); unemployment or loss of income (8,035 debtors); and domestic discord or relationship breakdown (3,222 debtors).
Of those insolvencies that were related to business, economic co…
Read the full article at: https://www.mybusiness.com.au/growth/3436-personal-insolvencies-not-business-related