Rate of return

Bankruptcies

Contributions and dividends – bankruptcies

In 2020–21, trustees (including the Official Trustee and registered trustees) administered over $46 million in contributions from 4,715 bankruptcies. This includes voluntary contributions. 

Trustees declared and paid dividends in 2,144 bankruptcies in 2020–21. These dividends returned over $68 million to creditors. 

 

Administered by the Official Trustee: 2020–21

Administered by registered trustees: 2020–21

Number of bankruptcies in which contributions were paid*

1,561

3,154

Value of contributions ($)*

$12,004,744

$34,013,631

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

1,221

923

Value of dividends ($)

$16,891,538

$51,314,997

* Includes voluntary contributions.

Rate of return – bankruptcies

There were 11,399 bankrupt estates finalised in 2020–21. Unsecured creditors received an average of 1.63 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: 2020–21

Registered trustees: 2020–21

Total: 2020–21

Number of estates finalised during the year

7,376

4,023

11,399

Number of finalised estates that have paid a dividend

887

978

1,865

Percentage of finalised estates that have paid a dividend

12.03%

24.31%

16.36%

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

8.58

12.60

11.42

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

0.78

2.37

1.63

Debt agreements

Estimated rate of dividends

The most common estimated rate of dividend in a debt agreement proposal in 2020–21 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

453

298

65.8%

31–40 cents

1,362

1,151

84.5%

41–50 cents

1,402

1,239

88.4%

51–60 cents

709

597

84.2%

61–70 cents

432 382

88.4%

71–80 cents

65

59

90.8%

81 cents or more

7

5

71.4%

Total

4,430 3,731 84.2%

Dividends paid in completed debt agreements

Creditors received an average of 54.90 cents per dollar owed in debt agreements completed in 2020–21.

State or territory

Number of debt agreements finalised

Value of creditor claims ($)

Value of dividends paid ($)

Rate of return (cents per dollar)

NSW

2,738 $101,131,621 $55,287,274 54.67

ACT

159 $6,016,113 $3,222,706 53.57

Vic

1,877 $69,895,455 $38,019,175 54.39

Qld

2,641 $94,568,015 $52,460,753 55.47

SA

449 $16,309,168 $8,623,026 52.87

NT

122 $4,336,551 $2,487,158 57.35

WA

955 $35,484,898 $19,794,189 55.78

Tas

214 $7,572,529 $4,178,586 55.18

Total

9,155

$335,314,350

$184,072,866

54.90

Personal insolvency agreements

There were 190 personal insolvency agreement estates finalised in 2020–21 by registered trustees. Unsecured creditors received an average of 9.70 cents for every dollar they were owed. There were no personal insolvency agreement estates finalised by the Official Trustee in 2020–21. 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: 2020–21

Number of estates finalised during the year

190

Number of finalised estates that have paid a dividend

172

Percentage of finalised estates that have paid a dividend

90.53%

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

10.38

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

9.70