Single Men Biggest Bankrupt Risk
SINGLE men in their 40s are at the highest risk of going bankrupt, according to a new report.
The Insolvency and Trustee Service Australia (ITSA) report says the most common age for declaring insolvency is 40 to 44 years, with the majority of declarations by single men.
“The age of bankrupts has consistently increased since 2003, with the proportion of bankrupts aged 18 to 39 declining and those aged 40 and over increasing,” the report said.
Released every two years, it said there were 23,125 bankrupts in 2011, of whom 57 per cent were men, with 40 per cent of those single and 29 per cent in their 40s.
The main drivers of personal bankruptcy were loss of work or income or excessive use of credit facilities, while business-related bankruptcies were mostly down to economic conditions.
Around 48 per cent of bankrupts earned more than $30,000, and 80 per cent of personal insolvency debtors earned at least that amount.
The report said 27 per cent of bankrupts owed at least $100,000, while 69 per cent of personal insolvency debtors owed at least that amount.
Banks were owed the biggest share of unsecured debt – 41 per cent in the case of bankrupts, 58 per cent for debt agreement debtors and 25 per cent for personal insolvency debtors.
Credit cards accounted for 21 per cent of bankrupts’ unsecured debt, 18 per cent of personal insolvency agreement debt and a record 58 per cent of debt agreement debt.
A debt agreement assists debtors with unmanageable debt, while an insolvency agreement is a flexible way for a debtor to come to an agreement with creditors without going bankrupt.
The most common age for debt agreement debtors is 25 to 29 years.