Bankruptcies and temporary debt protections

Bankruptcies by debtors’ petition and sequestration order

In 2021–22, 91% of new bankruptcies were by debtors’ petition (voluntary bankruptcies). This proportion decreased from 95% in 2020–21. The remaining 9% of new bankruptcies in 2021–22 were by sequestration order (bankruptcies initiated by creditors).

Note: Debtor’s petitions include insolvent deceased estates.

There were 4,853 people who were bankrupt sequestration order but had not submitted a statement of affairs. Of these, 85% became bankrupt at least 5 years ago.

Trustees administering new bankruptcies

The Official Trustee administers most new bankruptcies. In 2021–22, the Official Trustee administered 76% of bankruptcies. This is a fall from 84% in 2020–21.

Temporary debt protections

On 25 March 2020, declarations of intentions were changed to temporary debt protections. From 25 March to 31 December 2020, the length of protection a person can apply for increased from 21 days to six months.

In 2021–22, 207 temporary debt protections were accepted, a decrease of 50% from 2020–21. New South Wales and Queensland had the highest numbers of temporary debt protections accepted in 2020–21.