Personal insolvency numbers continued to fall in the December quarter, as low unemployment and high levels of savings protected households against rising interest rates and inflationary pressures. According to the latest Australian Financial Security Authority figures, there were 2321 new personal insolvencies in the December quarter last year – down 3.7 per cent from the September quarter and down 3.6 per cent from the December quarter 2021. There were 1344 bankruptcies during the quarter, 937 debt agreements, 28 personal insolvency agreements and 12 insolvent deceased estates.  More than a third of bankruptcies (36.8 per cent) were business related. AFSA released a report last month, saying it did not expect the low personal insolvency numbers to continue. It said: “Personal insolvency volumes are expected to revert towards the 10-year average over the next two years, as the full impact of recent monetary tightening and other macroeconomic factors hit households.” Over the past 20 years, Australia has averaged more than 28,000 personal insolvencies a year, with a high of 37,263 in the 2009/10 financial year. Structural changes contributed to a long-term decline in personal insolvency numbers over the past decade, to an average of 25,300. These included changes to lending standards, the impact of the Hayne royal commission on the behaviour of financial institutions (including debt recovery practices) and amendments to the Bankruptcy Act. In 2021/22, personal insolvencies hit a historic low of 9545, thanks to government, central bank and industry responses to the pandemic.