Bankruptcies and temporary debt protections

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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).

State or territory

Number of bankruptcies on debtors’ petition in 

2020–21

Number of bankruptcies on debtors’ petition in

2021–22

Number of bankruptcies on sequestration order in

2020–21

Number of bankruptcies on sequestration order in

2021–22

NSW

2,023

1,622

126

252

ACT

64

60

8

7

Vic

944

847

91

138

Qld

1,948

1,634

57

104

SA

419

352

13

17

NT

40

31

1

2

WA

735

616

31

31

Tas

140

172

1

1

Total

6,313

5,334

328

552

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.

Number of years since been made bankrupt by sequestration order

Number of bankrupts who have not lodged a statement of affairs

Less than one year

97

One year

136

Two years

117

Three years

216

Four years

167

Five to ten years

1,097

More than ten years

3,023

Total

4,853

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.

State or territory

Number of bankruptcies administered by the Official Trustee in 2020–21

Number of bankruptcies administered by the Official Trustee in 2021–22

Number of bankruptcies administered by registered trustees in 2020–21

Number of bankruptcies administered by registered trustees in 2021–22

NSW

1,809

1,382

340

492

ACT

49

48

23

19

Vic

812

677

223

308

Qld

1,730

1,394

275

344

SA

385

316

47

53

NT

36

23

5

10

WA

609

474

157

173

Tas

135

159

6

14

Total

5,565

4,473

1,076

1,413

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.

State or territory

Number of temporary debt protections accepted in 2020–21 Number of temporary debt protections accepted in 2021–22

NSW

170

75

ACT

5

0

Vic

60

29

Qld

97

60

SA

23

11

NT

2

2

WA

47

20

Tas

12

10

Total

416

207