The Inspector-General in Bankruptcy issued a Direction last week to WLP Restructuring, the Controlling Trustees for the estate of Mr Jon Angelo George Adgemis, to bring to creditors’ attention concerns over the trustees’ report to creditors. This resulted in the trustees adjourning the creditors’ meeting to 29 August 2025. The Inspector-General in Bankruptcy is monitoring the trustees’ further response.
The Australian Financial Security Authority (AFSA) and the Inspector-General in Bankruptcy is intensifying its scrutiny of Personal Insolvency Proposals to ensure they are not being misused by debtors or trustees in ways that harm creditors.
AFSA’s 2024-25 and 2025-26 Regulatory Action Statement highlighted concerns about some debtors using these proposals to avoid bankruptcy, and protect wealth and personal assets, which undermines the integrity of the credit system.
AFSA will act where it suspects system misuse. In February 2025 the Federal Court ruled in the case Inspector-General in Bankruptcy v Hartnett that Mr Hartnett’s Personal Insolvency Agreement should be set aside, and Mr Hartnett’s estate be placed into bankruptcy.
This followed an extensive investigation by the Inspector-General in Bankruptcy, which raised concerns that the terms of the agreement were unreasonable or not in the interests of creditors. This action marked the first time the Inspector-General in Bankruptcy brought this kind of action under the Bankruptcy Act 1966.
In 2024-25 AFSA intervened in 29% of all Personal Insolvency Proposals. We pay particular attention to cases that:
- offer creditors a meagre or trivial return per dollar
- include related-party creditors with little or no supporting evidence
- show poor investigation or reporting by the trustee.
The Inspector-General in Bankruptcy is unable to comment further at this time but will provide more information when appropriate.
