News
Issue No. 12 - August/September 2003
SA Bankruptcy Drop a Sign of Health
An 11 per cent drop in the number of South Australians declaring bankruptcy over the past 12 months is a further sign of our economic good health according to peak accounting body CPA Australia.
CPA Australia insolvency spokesman Mark Hall says high levels of employment, created by a sound economy, have contributed to the declining insolvency rate.
Insolvency Trustee Service Australia figures show that in 2002/03, a total of 2179 South Australians went bankrupt and 187 debt agreements were established (up 6.86 per cent). A total of 2366 South Australians were unable to make ends meet, compared to 2641 in 2001/02.
Nationally, bankruptcies fell 6 per cent in 2002/03, while debt agreements rose 35 per cent. Under a debt agreement, an individual proposes a repayment schedule, lump sum payment or relinquishing of an asset to creditors. Debt agreements are legally binding and only available to those with an annual net income of $31,000 or less, unsecured debts of less than $62,000 and assets of less than $62,000.
“With our six per cent unemployment rate among the lowest in the nation, our retail sector reporting healthy trading figures and the general optimism from employers who are indicating a rise in job creation, our economy is performing pretty well,” Mark says.
“Historically low interest rates and the strong Aussie dollar also are doing their part to encourage spending, with housing activity incredibly strong and imported household appli...
