Bankruptcies and declarations of intention

Bankruptcies by debtors’ petition and sequestration order

In 2018–19, 91% of new bankruptcies were by debtors’ petition (voluntary bankruptcies). This proportion did not change from 2017–18. The remaining 9% of new bankruptcies were by sequestration order (bankruptcies initiated by creditors).

There were 5,127 people who were bankrupt sequestration order but had not submitted a statement of affairs. Of these, 75% became bankrupt at least 5 years ago.

Trustees administering new bankruptcies

The Official Trustee administers most new bankruptcies. In 2018–19, the Official Trustee administered 80% of bankruptcies. This is a fall from 81% in 2017–18.

Declarations of intention

During 2018–19, declarations of intention provided temporary debt protection for 21 days. This protection prevents recovery action by unsecured creditors. The period was increased to six months for temporary debt protection accepted between 25 March 2020 and 31 December 2020 following legislative changes. From 1 January 2021 the 21 day protection period is reinstated. For more timely statistics, please see our fortnightly statistics.

In 2018–19, 397 declarations of intention were accepted, an increase of 2% from 2017–18. New South Wales and Queensland had the highest numbers of declarations of intention accepted in 2018–19.