PIAs leading the way
Last month the Australian Financial Security Authority (AFSA) released the personal insolvency activity statistics for the September 2014 quarter. It looks like the anomaly of the decreasing numbers of the previous quarter has been brought back into line with figures for all personal insolvency types increasing on last quarter.
An analysis of these statistics for the September 2014 quarter compared to the June 2014 quarter shows:
- Total personal insolvency activity increased by 8.5%
- Bankruptcy increased 13.8%
- Debt agreements increased by 1.0%
- Personal insolvency agreements increased by 37.5%
The most noticeable figure is that of the increase in Personal Insolvency Agreements. At Worrells we have noticed a very sharp increase in Personal Insolvency Agreements over the last quarter.
An analysis of the statistics for the September 2014 quarter compared to the September 2013 quarter shows:
- Total personal insolvency activity decreased 0.2%
- All states except for NSW, Qld and SA experienced a increase in total personal insolvency activity
- Bankruptcies decreased by 11.6%
- Personal insolvency agreements increased by 20%
- Debt agreements increased by 22.4%
PIA's leading the way
The September 2014 quarter results are not surprising to us at Worrells. We were a little surprised at the June 2014 quarter and didn't foresee the sharp decrease in bankruptcy numbers. However this quarter seems to be more of what we expect with an increase in bankruptcy numbers and Personal Insolvency Agreements compared to that of last quarter.
Looking ahead we expect that the bankruptcy numbers may slow a little, however we believe that Personal Insolvency Agreements and Debt agreements will continue to increase through the next quarter.
For the detailed breakdown of these statistics and accompanying commentary, please visit AFSA's website at https://www.afsa.gov.au/resources/statistics/provisional-bankruptcy-and-personal-insolvency-statistics/quarterly-statistics/quarterly-statistics-september-quarter-2014