The latest personal insolvency statistics released by AFSA for March 2023 show an increase in number over February but still well below past figures. New personal insolvency numbers increase in March 2023 | Australian Financial Security Authority (afsa.gov.au)
During March 2023, there were 921 new personal insolvencies – rising from 796 in February – but compared with 1,614 personal insolvencies in February 2020, and 2,736 in July 2019. As to 2019, AFSA makes an economic prediction that personal insolvency volumes are expected to revert towards 2019 levels over the next 2 financial years: STATE OF THE PERSONAL INSOLVENCY SYSTEM (afsa.gov.au). It is too early to tell whether these March 2023 figures are an unfortunate confirmation of a trend towards AFSA’s prediction.
Of the new personal insolvencies in March 2023, 579 were bankruptcies, 336 were debt agreements, and 6 were personal insolvency agreements.
AFSA advises that where it could identify the industry an individual worked in, the most common industries were construction, health care and social assistance, and retail. Construction also features high in corporate insolvencies. 193 people who went bankrupt (205 overall) were also involved in a business – rising from 176 in February.
Most of these bankruptcies will be handled by the Official Trustee. AFSA advises that in 2021-2022, nine practitioners (including the Official Trustee) were responsible for administering 80% of all active personal insolvencies.
As to the February 2023 figures, see Personal insolvency numbers – an increase or a decrease? – Murrays Legal