Thought I'd add to this... We're now seeing it in the AFSA...

Thought I'd add to this... We're now seeing it in the AFSA numbers.
At first I thought this was the result of banks tightening lending, but this would normally cause a spike in financial problems because it's harder to get loans.

Further, the senate inquiry may not impact because of management's foresight. Legislation impacts formal arrangements, not informal (from my understanding).

Granted there is still a fair chunk going through as formal arrangements (i.e. Debt Agreement or Bankruptcy), but the process exists for informal arrangements, so shifting others there should be quite easy.

The one thing I'm unsure of - for an informal agreement to work, there must be agreement by all creditors. In how many cases do creditors not agree, and then force the formal debt agreement?
I guess now that debt agreements are 3 years max, the creditors will likely have no choice. But we shall see.