In­sol­vency fig­ures drop a re­cov­ery sign

North West Telegraph - - Telegraph News - Sophia Con­stan­tine

The num­ber of peo­ple en­ter­ing into per­sonal bank­rupt­cies in the Pil­bara has started to sta­bilise, new data has re­vealed.

The lat­est re­gional in­sol­vency sta­tis­tics re­leased by The Aus­tralian Fi­nan­cial Se­cu­rity Author­ity saw the to­tal num­ber of debtors in the Pil­bara reach 25.

The sta­tis­tics re­vealed a slight de­crease on the De­cem­ber 2016 quar­ter, with the to­tal num­ber of debtors in the Pil­bara reach­ing 29.

In the Septem­ber quar­ter of 2017, the to­tal num­ber of debtors in the East Pil­bara reached eight, all of which had en­tered into per­sonal in­sol­vency, while 17 peo­ple en­tered in­sol­vency in the West Pil­bara, four of which were busi­ness re­lated.

Per­sonal in­sol­vency debt is in­curred by an in­di­vid­ual if they can­not see a way out and de­clare bank­ruptcy.

WA In­sol­vency So­lu­tions part­ner Chris Wil­liamson said the drop in val­u­a­tion of the prop­erty mar­ket had the big­gest ef­fect on peo­ple liv­ing in the Pil­bara.

“The drop in the value of prop­er­ties has been ab­so­lutely sig­nif­i­cant,” he said. “The amount that they’ve dropped by has left peo­ple with no eq­uity in the prop­erty, which is then caus­ing them to go bank­rupt.”

Port Hed­land Cham­ber of Com­merce pres­i­dent Jim Hen­neberry said the val­u­a­tion of prop­erty in Port and South Hed­land had dropped by an av­er­age of 75 per cent from 2012.

“Bor­row­ing money for busi­nesses th­ese days is al­most im­pos­si­ble,” he said. “The banks have to re­alise the prop­erty has hit bot­tom of the mar­ket . . . they have to talk to val­uers and make sure they aren’t fol­low­ing the spi­ral down.”

Mr Hen­neberry said a sense of op­ti­mism was re­turn­ing to the mar­ket.

“We be­lieve the State Gov­ern­ment will de­liver good news to the Town of Port Hed­land be­fore Christ­mas and we will get the town mov­ing again with jobs,” he said.

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