Update on the distribution of bankrupt estates to Registered Trustees

At the end of July 2021, AFSA announced a change in the way bankrupt estates would be distributed to registered trustees (RTs). This followed extensive consultation with key stakeholders, including ARITA. 

The change involves a transfer of new estates to registered trustees under s156A of the Bankruptcy Act 1966 where it is clear that a registered trustee may consent to administer the estate. This is in addition to work already transferred by the Official Trustee (OT) under s181A.

The change is designed to increase the overall number of matters distributed to the private sector and increase the number of matters distributed to female trustees. The main priority of the OT is to continue to focus on matters that are in the public interest and build confidence in the personal insolvency system.

To ensure the process was efficient and easy for all stakeholders, the changes were initially trialled as a beta launch. During this period, feedback was sought to refine and improve the new process.

We have released a progress report to evaluate the beta launch and its effectiveness.

To read the full report, visit our website.