Local business bankruptcies on an upward trend
WITHIN a three month period eight local businesses announced they were bankrupt or they were unable to pay their debts.
According to the latest personal insolvency statistics released by the Australian Financial Security Authority, the total number of those in Coffs Harbour entering debt between July and September this year was 30.
A total of 22 debtors had an insolvency that was non-business related.
There were also 13 debtors in total in the Nambucca to Kempsey region, and 14 in the Clarence Valley.
Unsurprisingly, Sydney topped the state with the highest number of debtors reaching 1,310, including 312 businesses.
The statistics include both insolvency and bankruptcies in the one category.
Insolvency refers to a financial state of being when an individual or business can no longer pay lenders back on time, whereas bankruptcy refers to the legal declaration of this.
These new figures reveal there has been a slight rise in the number of businesses entering debt, with just five in the June quarter and three in the March quarter.
The main cause of businesses becoming bankrupt during 2016-17 was economic conditions, followed by personal reasons including health, excessive drawings and lack of business ability.
The main causes for residents entering debts included excessive use of credit, followed by unemployment or loss of income, domestic discord or relationship breakdown, and ill health.