Bankruptcies
Contributions and dividends – bankruptcies
In 2022–23, trustees (including the Official Trustee and Registered Trustees) administered more than $31 million in contributions from 2,696 bankruptcies. This includes voluntary contributions.
Trustees declared and paid dividends in 1,320 bankruptcies in 2022–23. These dividends returned more than $64 million to creditors.
| Administered by the Official Trustee: 2022–23 | Administered by registered trustees: 2022–23 | |
|---|---|---|
|
Number of bankruptcies in which contributions were paid* |
251 |
2,445 |
|
Value of contributions ($)* |
$1,161,391 |
$30,018,295 |
|
Number of bankruptcies in which dividends (interim and final) were declared and paid |
434 |
886 |
|
Value of dividends ($) |
$7,600,189 |
$56,791,934 |
* Includes voluntary contributions.
Rate of return – bankruptcies
There were 8,019 bankrupt estates finalised in 2022–23. Unsecured creditors received an average of 2.19 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: 2022–23 | Registered trustees: 2022–23 | Total: 2022–23 | |
|---|---|---|---|
|
Number of estates finalised during the year |
5,400 |
2,619 |
8,019 |
|
Number of finalised estates that have paid a dividend |
457 |
770 |
1,227 |
|
Percentage of finalised estates that have paid a dividend |
8.46% |
29.40% |
15.30% |
|
Average rate of return for unsecured creditors in dividend paying estates (cents per dollar) |
7.78 |
10.83 |
10.04 |
|
Average rate of return for unsecured creditors in all finalised estates (cents per dollar) |
1.27 |
2.68 |
2.19 |
Debt agreements
Estimated rate of dividends
The most common estimated rate of dividend in a debt agreement proposal in 2022–23 was between 41 and 50 cents per dollar owed, 88% 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 |
476 |
324 |
68.1% |
|
31–40 cents |
1,100 |
923 |
83.9% |
|
41–50 cents |
1,749 |
1,531 |
87.5% |
|
51–60 cents |
662 |
585 |
88.4% |
|
61–70 cents |
474 |
427 |
90.1% |
|
71–80 cents |
131 |
125 |
95.4% |
|
81 cents or more |
29 |
27 |
93.1% |
|
Total |
4,621 |
3,942 |
85.3% |
Dividends paid in completed debt agreements
Creditors received an average of 51.74 cents per dollar owed in debt agreements completed in 2022–23.
| State or territory | Number of debt agreements finalised | Value of creditor claims ($) | Value of dividends paid ($) | Rate of return (cents per dollar) |
|---|---|---|---|---|
|
NSW |
3,832 |
$139,488,717 |
$71,547,171 |
51.29 |
|
ACT |
175 |
$6,916,581 |
$3,693,040 |
53.39 |
|
Vic |
2,280 |
$84,915,738 |
$43,662,753 |
54.28 |
|
Qld |
3,014 |
$109,682,097 |
$60,915,888 |
52.49 |
|
SA |
588 |
$21,526,988 |
$11,063,417 |
51.39 |
|
NT |
163 |
$6,457,533 |
$3,347,512 |
51.84 |
|
WA |
1,593 |
$65,394,808 |
$33,598,380 |
51.38 |
|
Tas |
238 |
$8,507,595 |
$4,496,281 |
52.85 |
|
Total |
12,571 |
$464,505,833 |
$240,329,204 |
51.74 |
Personal insolvency agreements
There were 238 personal insolvency agreement estates finalised in 2022–23 by registered trustees. Unsecured creditors received an average of 10.36 cents for every dollar they were owed. There were no personal insolvency agreement estates finalised by the Official Trustee in 2022–23. 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: 2022–23 | |
|---|---|
|
Number of estates finalised during the year |
238 |
|
Number of finalised estates that have paid a dividend |
199 |
|
Percentage of finalised estates that have paid a dividend |
83.61% |
|
Average rate of return for unsecured creditors in dividend paying estates (cents per dollar) |
12.70 |
|
Average rate of return for unsecured creditors in all finalised estates (cents per dollar) |
10.36 |