Debt still an issue in Wanneroo

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One hundred and six debtors entered a new personal insolvency in the City of Wanneroo in the September quarter.

THE City of Wanneroo had the highest number of new debtors entering a personal insolvency in the metropolitan area in the September quarter, according to the Australian Financial Security Authority.

Earlier this week the Australian Financial Security Authority (AFSA) said while the number of debtors who entered a new personal insolvency in Greater Perth fell by 43 ( down 5 per cent) to 809 the City of Wanneroo with 106 was the area with the highest number of new debtors.

The good news for Wanneroo was that the September quarter result was better than the June quarter where the total number of new debtors was 117.

In the September quarter AFSA data showed there were 77 debtors in the City of Wanneroo with an insolvency that was non-business related (or not stated) compared with 95 in the June quarter.

The data showed there were 29 debtors in the City of Wanneroo in the September quarter with an insolvency that was business related compared with 22 in the previous quarter.

The City of Swan with 85 was the next highest followed by the City of Rockingham (70) and then the City of Stirling (69).

In the rest of Western Australia, Bunbury (44) was the region with the highest new debtors.

Australian Bureau of Statistics 2016 Census of Population and Housing data showed there were 136,697 people aged 18 years and over in the City of Wanneroo.

Note: The Australian Financial Security Authority (AFSA) website says statistics on all debtors who became bankrupt or entered a debt agreement or personal insolvency agreement during the quarter are reported.

The number of debtors entering into these arrangements under the Bankruptcy Act 1966 is measured as follows:

  • Bankrupts (Parts IV and XI of the Bankruptcy Act 1966): the number of debtors who became bankrupt under debtors’ petitions, sequestration orders and Part XI deceased estate bankruptcy administrations in the quarter.
  • Debt agreement debtors (Part IX of the Bankruptcy Act 1966): the number of debtors whose debt agreements were accepted by creditors in the quarter.
  • Personal insolvency agreement debtors (Part X of the Bankruptcy Act 1966): the number of debtors whose personal insolvency agreement proposals were accepted by creditors in the quarter.

The business and non-business personal insolvency statistics include personal insolvencies and not corporate insolvencies.

AFSA does not ask each debtor for further information on his or her proprietary interest in a business.

Every debtor who becomes bankrupt or proposes a debt agreement or personal insolvency agreement is required to lodge a completed statement of affairs form with AFSA.

AFSA generally sources the regional personal insolvency statistics from this form.

When a bankruptcy is the result of a sequestration order, there may be a delay before the bankrupt lodges a statement of affairs. When this occurs, AFSA reports:

  • the address based on the debtors address supplied by the court or not supplied, and
  • the bankruptcy as non-business related.

If a bankrupt lodges a statement of affairs after AFSA has compiled its statistics, it does not revise them with this updated information.

The quality and reliability of AFSA statistics depends on the accuracy of the information provided by bankrupts and debtors on their statements of affairs.