The Insolvency and Trustee Service Australia (ITSA) has released a report that indicates the main reason for business-related bankruptcies in 2011 were competition, credit restrictions, a fall in prices, or increases in cost.
42% of business-related bankruptcy was due to these factors, according to the ITSA.
The report, Profiles of Debtors 2011, profiled all those involved in bankruptcy proceedings that lodged a Statement of Affair in 2011.
Meanwhile, ‘unemployment or loss of income was the main cause of non-business-related bankruptcies, sitting at 34%.
ITSA also discovered that in 2011, the average bankrupt individual was male and aged between 35 and 54 years as well as a single without dependents.
The study also found 57% of bankrupt individuals were male in 2011, compared to 43% who were female. 15% were aged 40-44, closely followed by 45-49-year-olds at 14%.
“The majority of debtors were male and employed in 2011. The average age of debtors and their unsecured debts have increased since 2003,” said Ms. Veronique Ingram, inspector-general in bankruptcy at ITSA.
Just under half (48%) of bankrupt persons earned $30,000 or more in 2011.