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ARTICLE · 04 SEPTEMBER 2020

COVID-19 support measures cause significant drop in insolvency appointments

The decreases in insolvency appointments seem to be the result of government intervention to support business and jobs.

AustraliaInsolvency/Bankruptcy/Re-Structuring

June quarter 2020 statistics in for corporate and personal insolvency.

The long-term downtrend in insolvency appointments has accelerated in the June quarter 2020, with the largest quarterly drops in both corporate and personal insolvency ever recorded.

Personal insolvency

The Australian Financial Security Authority (AFSA) personal insolvency statistics for the June quarter of 2020 recorded an overall drop of 35% from the June 2019 quarter. This is the largest percentage fall in bankruptcy since quarterly statistics began in 1988.

Bankruptcies saw the largest decline, with a fall of 42%. Bankruptcies are now at their lowest level since 1989. Debt agreements also declined by a significant 25%, however, given recent growth, were not at all-time lows. Personal insolvency agreements also recorded a decrease of 10%, however on a significantly lower number of appointments than bankruptcy and debt agreements.

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