The number of Brimbank residents declaring bankruptcy has remained stable, with unemployment still the leading cause.
Figures released by the Australian Financial Security Authority last week revealed western suburbs including Sunshine, Deer Park, St Albans and Burnside had the highest rate of bankruptcies in the past financial year.
Twenty people declared bankruptcy in Sunshine and 13 entered “debt agreements” – binding agreements between bankrupts and creditors, where creditors agree to accept a sum of money the debtors can afford.
Postcode 3023, which covers Burnside, Cairnlea, Caroline Springs and Deer Park, had 41 residents who declared bankruptcy, 24 who entered debt agreements, and three personal insolvency agreements between debtors and creditors.
Consumer Action Law Centre’s MoneyHelp manager, Penelope Hill, said most people who went bankrupt earned less than $30,000 the year before, and unemployment was the primary cause of non-business-related bankruptcy.
In 2014, about 1200 Victorians sought bankruptcy advice from MoneyHelp’s telephone financial counselling service.
“By the time someone looks at bankruptcy they’re at the end of their tether,” Ms Hill said.
“They want to pay debts, but often they’re insurmountable and bankruptcy is the only way to get the weight off their shoulders.”
To contact, the MoneyHelp financial counselling service, phone 1800 007 007.
