Unemployment accounts for one-third of personal insolvencies 21 January 2015 4:36PM John Kavanagh Unemployment and loss of income were the main causes of personal insolvency during the 2013/14 financial year. Excessive use of credit, relationship breakdown and ill health were also significant factors.Figures released by the Australian Financial Security Authority show that unemployment or loss of income accounted for 8418 out of a total of 24,438 non-business related personal insolvencies in the year to June 2014 - 34.4 per cent of the total.Excessive of credit accounted for 6999 personal insolvencies, relationship breakdown accounted for 3056 and ill health accounted for 2160.Other causes included adverse legal action, gambling or speculation and liabilities due to guarantees.AFSA said few personal insolvencies were business related.It said the causes of personal insolvency have been stable over time. In the 2007/08 financial year unemployment or loss of income accounted for 32.3 per cent of non-business related personal insolvencies, compared with 34.4 per cent in 2013/14.The proportion of insolvencies resulting from excessive use of credit was 30.5 per cent in 2007/08 and 28.7 per cent in 2013/14.The proportion of insolvencies resulting from relationship breakdown has fallen from 12.6 per cent to 12.5 per cent over the same period and the proportion due to ill health has fallen from 10.9 per cent to 8.8 per cent.AFSA also reported that personal insolvency numbers in the December quarter were down 8.1 per cent on the December quarter in 2013. There were 6888 personal insolvencies during the quarter.Personal insolvency numbers fell in three of four quarters last year.