Resource states generating debt stress

Western Australia recorded the strongest growth in bankruptcy activity in the September 2009 quarter, followed by Queensland, while activity in most other major states was subdued.

Nationally, the Insolvency Trustee Service reported that there were 9712 acts of bankruptcy in the three months to September 30, up 7.9 per cent over the same period in 2008 and up 2.9 per cent compared to the June 2009 quarter.

Growth in the number of new debt agreements was marginal or down everywhere except WA, where there were 67 per cent more debt agreements started than there were in the September quarter last year. Part IV and XI bankruptcies were also up in the west by 37.5 per cent.

Bankruptcy activity was also up in Queensland by 17 per cent.

In Victoria there were 12 per cent fewer debt agreements signed, perhaps as a result of one debt administrator going bankrupt herself.

The number of personal insolvency agreements under part X of the bankruptcy act continues to grow strongly, up 34 per cent, off a relatively low base. Part X agreements are usually taken out by higher net-worth individuals who are not eligible for part IX debt agreements.