Rate of return

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Bankruptcies

Contributions and dividends – bankruptcies

In 2021–22, trustees (including the Official Trustee and registered trustees) administered nearly $40 million in contributions from 3,970 bankruptcies. This includes voluntary contributions.

Trustees declared and paid dividends in 1,814 bankruptcies in 2021–22. These dividends returned nearly $68 million to creditors.

 

Administered by the Official Trustee: 2021–22

Administered by registered trustees: 2021–22

Number of bankruptcies in which contributions were paid*

1,189

2,781

Value of contributions ($)*

$9,635,551

$30,067,365

Number of bankruptcies in which dividends (interim and final) were declared and paid

1,011

803

Value of dividends ($)

$14,714,675

$52,898,337

* Includes voluntary contributions.

Rate of return – bankruptcies

There were 9,359 bankrupt estates finalised in 2021–22. Unsecured creditors received an average of 2.23 cents for every dollar they were owed.

The following table shows the average rate of return in bankrupt estates. An insolvency proceeding is reported as one administration regardless of whether there are multiple debtors. Each partner in the insolvency proceeding has an estate.

 

Official Trustee: 2021–22

Registered trustees: 2021–22

Total: 2021–22

Number of estates finalised during the year

6,713

2,646

9,359

Number of finalised estates that have paid a dividend

872

704

1,576

Percentage of finalised estates that have paid a dividend

12.99%

26.61%

16.84%

Average rate of return for unsecured creditors in dividend paying estates (cents per dollar)

7.49

10.79

9.70

Average rate of return for unsecured creditors in all finalised estates (cents per dollar)

1.41

2.79

2.23

Debt agreements

Estimated rate of dividends

The most common estimated rate of dividend in a debt agreement proposal in 2021–22 was between 41 and 50 cents per dollar owed, 87% of these proposals became debt agreements.

Estimated rate of dividend (cents per dollar)

Number of debt agreement proposals accepted by the Official Receiver

Number of debt agreements made

Proportion of debt agreement proposals that became debt agreements

Less than 31 cents

379

270

71.2%

31–40 cents

964

816

84.7%

41–50 cents

1,428

1,249

87.5%

51–60 cents

630

548

87.0%

61–70 cents

424

382

90.1%

71–80 cents

118

117

99.2%

81 cents or more

32

32

100.0%

Total

3,975

3,414

85.9%

Dividends paid in completed debt agreements

Creditors received an average of 55.40 cents per dollar owed in debt agreements completed in 2021–22.

State or territory

Number of debt agreements finalised

Value of creditor claims ($)

Value of dividends paid ($)

Rate of return (cents per dollar)

NSW

2,880

$104,599,366

$58,786,777

56.20

ACT

161

$6,271,123

$3,444,760

54.93

Vic

1,822

$70,462,371

$38,247,129

54.28

Qld

3,014

$109,682,097

$60,915,888

55.54

SA

525

$19,862,028

$10,809,239

54.42

NT

114

$4,548,149

$2,603,329

57.24

WA

1,279

$50,389,193

$27,898,050

55.37

Tas

241

$8,838,412

$4,869,897

55.10

Total

10,036

$374,652,739

$207,575,068

55.40

Personal insolvency agreements

There were 222 personal insolvency agreement estates finalised in 2021–22 by registered trustees. Unsecured creditors received an average of 8.71 cents for every dollar they were owed. There were no personal insolvency agreement estates finalised by the Official Trustee in 2021–22. The Official Trustee only administers personal insolvency agreements when a registered trustee resigns, is deregistered or dies.

The following table shows the average rate of return in personal insolvency agreement estates. An insolvency proceeding is reported as one administration regardless of whether there are multiple debtors. Each partner in the insolvency proceeding has an estate.

 

Registered trustees: 2021–22

Number of estates finalised during the year

222

Number of finalised estates that have paid a dividend

195

Percentage of finalised estates that have paid a dividend

87.84%

Average rate of return for unsecured creditors in dividend paying estates (cents per dollar)

9.34

Average rate of return for unsecured creditors in all finalised estates (cents per dollar)

8.71