Bankruptcies and declarations of intention

Annual administration statistics for bankruptcies and declarations of intention.

Bankruptcies by debtors' petition and sequestration order

In 2017–18, 91% of new bankruptcies were by debtors’ petition (voluntary bankruptcies). This is an increase from 90% in 2016–17.

The remaining 9% of new bankruptcies were by sequestration order (bankruptcies initiated by creditors).

By state and territory, the proportion of bankruptcies by debtors’ petition in 2017–18 varied between 85% in Northern Territory and 95% in Tasmania.
 

State or territory Number of bankruptcies on debtors' petition in 2016-17 Number of bankruptcies on debtors' petition in 2017-18 Number of bankruptcies on sequestration order in 2016-17 Number of bankruptcies on sequestration order in 2017-18
NSW 4,132 4,322 489 412
ACT 167 167 24 19
Vic 2,798 2,705 454 357
Qld 4,516 4,587 388 420
SA 1,045 1,042 90 97
NT 113 135 9 24
WA 1,648 1,883 222 177
Tas 405 443 18 21
Total 14,824 15,284 1,694 1,527

Trustees administering new bankruptcies

Most new bankruptcies are administered by the Official Trustee.

In 2017–18, the Official Trustee administered 81% of bankruptcies. This proportion did not change from 2016–17.

Registered trustees administered the remaining 19% in 2017–18.

By state and territory, the proportion of bankruptcies administered by the Official Trustee varied between 74% in Australian Capital Territory and 89% in Tasmania.
 

State or territory Number of bankruptcies administered by Official Trustee in 2016–17 Number of bankruptcies administered by Official Trustee in 2017–18 Number of bankruptcies administered by registered trustees in 2016–17 Number of bankruptcies administered by registered trustees in 2017–18
NSW 3,825 3,968 796 766
ACT 144 138 47 48
Vic 2,522 2,378 730 684
Qld 4,074 4,092 830 915
SA 1,002 970 133 169
NT 94 124 28 35
WA 1,415 1,588 455 472
Tas 386 412 37 52
Total 13,462 13,670 3,056 3,141

Declarations of intention

A declaration of intention provides temporary relief for up to 21 days. During this period, unsecured creditors cannot take any action to recover debts.

In 2017–18, 388 declarations of intention were accepted, which was a decrease of 16 or 4% from 2016–17. New South Wales and Queensland had the highest numbers of declarations of intention accepted in 2017–18.

State or territory Number of declarations of intention accepted in 2016-17 Number of declarations of intention accepted in 2017-18
NSW 160 151
ACT 3 3
Vic 56 63
Qld 78 78
SA 30 23
NT 3 1
WA 64 63
Tas 10 6
Total 404 388