Record number of Australians file for debt agreements The number of Australians filing for part nine debt agreements has risen nearly eight per cent in the last financial year. More Australian's are falling victim to financial stress, with a record number entering debt agreements during the 2012-13 financial year. Just under 10,000 people filed debt agreements in the 12 months to June 30, up nearly eight per cent on this time last year. It comes as the overall number of people filing for personal insolvency - which also includes bankruptcy - dropped two per cent to a total of 30,822 people across Australia. Chief Executive of the Insolvency and Trustee Service Australia (ITSA) Veronique Ingram said the number of people taking out debt agreements has nearly doubled over the last decade from 16 to 31 per cent of personal insolvency activity at a time when bankruptcy statistics have remained relatively stable. New South Wales had the highest number of people entering debt agreements, with 3,235 in the last financial year, followed by Queensland and Victoria with 2,706 and 1,846 respectively. The lowest numbers were found in the Northern Territory with 102 people, although this was up 82 per cent on last year's figure of 56 cases, while 173 people entered debt agreements in the ACT. Every state except Western Australia experienced an increase in the number of people entering debt agreements. This is opposed to bankruptcy cases which dropped across the country in every state but rose in the ACT and Northern Territory. My Budget Director Tammy May said debt agreements are a form of bankruptcy which stays on the national record and can affect employment opportunities depending on your situation. The consequences are almost the same as with bankruptcy, although under debt agreements you are allowed to keep certain assets. There're not too many differences between a Part nine [debt agreement] and a bankruptcy. With a part nine, you're paying back a portion of money and may be making a payment you can't avoid whereas with bankruptcy you're absolved," she said. A separate report from the ITSA shows that those most likely to file for personal insolvency, which includes both bankruptcy and a debt agreements, were men aged over 40 with no dependants. Some of the most common occupations are construction workers, marketing managers and human resource managers, along with food trade workers and sales representatives. Of those who did fall victim to financial stress, excessive use of credit was the most common cause for those aged under 25, while economic conditions and unemployment were also commonly cited among older people. However Ms May said she believes some people sign agreements without fully understanding what they mean, when in 99 per cent of cases their situation can be resolved with good management. The hook is, they don't know what it is when they inquire. They're feeling overwhelmed, stressed and they're searching online they see get rid of debt in minutes. it paints a really rosy picture, then they inquire and get hooked into the sales process and signing up for a debt agreement where they could have avoided it. In some cases it's the right solution for a client but in most cases they can be avoided," she said. Instead, Ms May said the best thing to do in bad financial situations is to get an independent assessment and advice.