Fewer businesses were taken to court over outstanding debt during the final three months of 2017 compared with the same period a year earlier, according to CreditorWatch’s latest quarterly Small Business Risk Review.
Four states saw a decline in the number of court actions taken against debtors in quarter four; namely, Queensland (-9%), NSW (-16%), Western Australia (-16%) and Victoria (-34%). This was accompanied by a significant decrease in the value payment defaults across Australia (-70%) as well as a modest reduction in the number of cancelled unincorporated entities (-8%).
Although the value of court judgments declined in NSW (-7%), Western Australia (-16%) and Victoria (-34%), they rose significantly in Queensland (28%), indicating an increase in the number of large cases being tried against debtors. Court judgment amounts also rose significantly in South Australia (23%), where court actions remained at the same level as in quarter four of 2016.
For more information, please:
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