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).

State or territory

Number of bankruptcies on debtors’ petition in

2017–18

Number of bankruptcies on debtors’ petition in

2018–19

Number of bankruptcies on sequestration order in

2017–18

Number of bankruptcies on sequestration order in

2018–19

NSW

4,322

4,022

412

385

ACT

167

138

19

19

Vic

2,705

2,280

357

308

Qld

4,587

4,239

420

343

SA

1,042

928

97

81

NT

135

133

24

11

WA

1,883

1,837

177

245

Tas

443

344

21

16

Total

15,284

13,921

1,527

1,408

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.

Number of years since been made bankrupt by sequestration order

Number of bankrupts who have not lodged a statement of affairs

Less than one year

158

One year

365

Two years

245

Three years

284

Four years

250

Five to ten years

1,515

More than ten years

2,310

Total

5,127

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.

State or territory

Number of bankruptcies administered by the Official Trustee in 2017–18

Number of bankruptcies administered by the Official Trustee in 2018–19

Number of bankruptcies administered by registered trustees in 2017–18

Number of bankruptcies administered by registered trustees in 2018–19

NSW

3,968

3,636

766

771

ACT

138

121

48

36

Vic

2,378

2,010

684

578

Qld

4,092

3,773

915

809

SA

970

835

169

174

NT

124

119

35

25

WA

1,588

1,517

472

565

Tas

412

326

52

34

Total

13,670

12,337

3,141

2,992

Declarations of intention

During 2018–19, declarations of intention provided temporary debt protection for 21 days. This protection prevents recovery action by unsecured creditors. We recently increased period this to six months. 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.

State or territory

Number of declarations of intention accepted in 2017–18

Number of declarations of intention accepted in 2018–19

NSW

151

187

ACT

3

8

Vic

63

46

Qld

78

87

SA

23

9

NT

1

6

WA

63

46

Tas

6

8

Total

388

397