Strata bodies are forcing Australians into bankruptcy almost as much as the tax office, and private schools are also increasingly turning to the debilitating measure to recover unpaid debts.
That’s according to a report by Financial Counselling Australia (FCA) released today, which found the number of people forced into bankruptcy is climbing, and the proportion of creditor petitions that end in bankruptcy has tripled over the last six years, up to 40 per cent.
It outlined that, while the measure should be used as a final step, many Australians have been declared bankrupt over debts as small as $10,000 – which can be largely composed of legal and interest fees.