More than 30,000 Australians declared bankruptcy in FY18, a rise of 4% from the year prior, according to the Personal Bankruptcy Analysis released by data registry and analytics provider illion.
The company found that Queensland stood at the top of the list with 9,415 personal bankruptcies and a 1.5% annual rate increase. Western Australia had the sharpest year-on-year rise of up to 11.7% with 4,130 personal bankruptcies, while Victoria experienced a 2.2% annual drop.
Rising household debt levels, stagnant wage growth and falling house prices across the eastern seaboard are a bad combination for consumers right now, illion CEO Simon Bligh said in a statement.
also said that “Sydney’s declining property market and the significant rise in personal bankruptcies could be mirrored in Melbourne in FY19, as its property market is showing signs of following the same downwards trajectory”.
However, in Western Australia and Queensland, property markets are stabilising and resource prices are recovering despite a significant number of households still experiencing hard times.
“Anyone who is thinking about declaring bankruptcy should carefully weigh up their options. Bankruptcy has long-term effects on a person’s financial position such as impacting their ability to borrow or even rent a home,” Bligh said.
He said anyone going through financial hardship should seek the help of a financial counsellor.
John Dickinson: Dealing with late payments on a credit file
Trail book buyer makes ongoing service to borrowers a requirement of deal