Personal insolvencies are on the rise

The key consequences of bankruptcy.

Personal insolvencies are on the rise. For those of your clients who are in business and find themselves encountering challenging headwinds, it's never been a more important time to revisit some of the consequences of bankruptcy. My colleague, Paul Nogueira, touched on this topic in his 2022 article Bankruptcy: What is it & how does it work.

Irrespective of how the bankruptcy is initiated, voluntarily by the debtor or by a creditor, it is a legal process that gives a financial fresh start to the debtor and due process to those creditors who are owned money.

The personal insolvency outlook

According to a recent report released by the Australian Financial Security Authority (AFSA) for 2024, personal insolvencies are on the rise¹.