Personal Insolvency Trends in Australia 1990-2008

Abstract

Under the Bankruptcy Act 1966 (CTH), there are three regulated forms of personal insolvency: bankruptcy, debt agreements, and personal insolvency agreements. Between 1990 and 2008 there was a 261% increase in the number of personal insolvencies in Australia, which far exceeded the 24% increase in the Australian population during that period. In this Australian-first study reasons are identified for the increase in the number of personal insolvencies. Evidence of significant changes is found in the characteristics of personal insolvents, which contributed to the increase in the number of personal insolvencies.