Record numbers going broke
The Australian economy might be buoyant but that has not stopped the Federal Government’s Insolvency and Trustee Service (ITSA) prosecuting a record number of cases under the Bankruptcy Act.
According to data released today, 25,242 debtors became bankrupt in 2006-07 and ITSA received more than 1,100 complaints from bankruptcy trustees and creditors alleging criminal misconduct.
The estimated value of this year’s bankruptcy related offences was $20.7 million.
According to the ITSA data, the most common offence reported and prosecuted last year related to bankrupts not filing a State of Affairs — the mandatory document detailing financial and personal affairs at the time of bankruptcy.
The other most common offences include failing to disclose assets to trustees, filing false declarations, incurring credit without disclosing bankruptcy status and operating a business without advising the people with whom they were doing business that they were bankrupt.
AUTHOR
Mike Taylor
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