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ARTICLE · 11 JUNE 2020

Insolvency appointment trend unaffected by current economic climate

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When COVID-19 government relief measures expire, a significant jump in personal and corporate insolvencies is expected.

AustraliaInsolvency/Bankruptcy/Re-Structuring
Brendan Giles
Brendan Giles
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Insolvency appointments continue to fall.

Insolvency appointments have continued its long-term downward trend in the March quarter of 2020.

Personal Insolvency

The Australian Financial Security Authority (AFSA) released the personal insolvency statistics for the March quarter of 2020. Personal insolvencies continued their downward trend with a 16.5% decrease compared to the March 2019 quarter with only 5,319 new personal insolvencies.

Bankruptcies were down a further 6.4% taking them to their lowest level since the December quarter of 1990. However, debt agreements bounced back from their decade low last quarter, to see growth of 18.8%. Personal insolvency agreements also saw a modest rise of 8.6%.

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