Bankruptcy rife in Rockingham

New statistics reveal an alarming 88 per cent increase in Rockingham residents declaring bankruptcy, with experts warning of the possible dangers associated with business dealings.

The Australian Financial Security Authority’s latest regional personal insolvency statistics show local bankruptcy cases for the June quarter were 12 times the national rate.

GlobalX Legal Solutions chief executive Peter Maloney said the spike in insolvency numbers demonstrated a need for Rockingham residents to ensure they were completely aware of who they engaged in business.

“Personal insolvency in Rockingham increased from 51 cases in June, 2015 to 96 cases in June, 2016, which is a significant increase given the city’s population of 128,000 residents,” he said.

The Federal Government recently proposed measures to improve existing bankruptcy and insolvency laws by making changes to the default bankruptcy period, introducing a safe harbour for directors, and changing the operation of “ipso facto” clauses.

“The Government’s proposals demonstrate the need to address the rapid increase of personal insolvency cases, but people should already be taking extra measures to ensure their personal and business assets are protected,” Mr Maloney said.

“In this volatile market, a simple bankruptcy search gives certainty of an individual’s financial background, helping ensure the bona fides of a deal are not in question.”