Rate of return

Bankruptcies

Contributions and dividends – bankruptcies

In 2017–18, trustees (including the Official Trustee and registered trustees) administered nearly $50 million in contributions from 5,805 bankruptcies. This includes voluntary contributions.

Trustees declared and paid dividends in 2,184 bankruptcies in 2017–18. These dividends returned nearly $70 million to creditors.

 

Administered by the Official Trustee: 2017–18

Administered by registered trustees: 2017–18

Number of bankruptcies in which contributions were paid*

2,074

3,731

Value of contributions ($)*

$12,419,242

$37,451,255

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

1,020

1,164

Value of dividends ($)

$17,318,074

$52,538,603

* Includes voluntary contributions.

Rate of return – bankruptcies

There were 19,736 bankrupt estates finalised in 2017–18. Unsecured creditors received an average of 1.61 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: 2017–18

Registered trustees: 2017–18

Total: 2017–18

Number of estates finalised during the year

15,584

4,152

19,736

Number of finalised estates that have paid a dividend

776

1,123

1,899

Percentage of finalised estates that have paid a dividend

4.98%

27.05%

9.62%

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

9.77

9.06

9.20

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

0.89

2.08

1.61

 

Debt agreements

Estimated rate of dividends

The most common estimated rate of dividend in a debt agreement proposal in 2017–18 was between 61 and 70 cents per dollar owed. This was consistent with previous years. In 2017–18, 89% 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

473

357

75.5%

31–40 cents

949

769

81.0%

41–50 cents

2,485

2,142

86.2%

51–60 cents

3,832

3,360

87.7%

61–70 cents

7,406

6,595

89.1%

71–80 cents

1,579

1,358

86.0%

81 cents or more

311

254

81.7%

Total

17,035

14,835

87.1%

 

Dividends paid in completed debt agreements

Creditors received an average of 57.05 cents per dollar owed in debt agreements completed in 2017–18.

State or territory

Number of debt agreements finalised

Value of creditor claims ($)

Value of dividends paid ($)

Rate of return (cents per dollar)

NSW

2,443

$88,550,413

$51,105,081

57.71

ACT

114

$4,017,775

$2,369,315

58.97

Vic

1,454

$53,890,274

$30,581,406

56.75

Qld

2,142

$69,732,936

$39,759,009

57.02

SA

338

$10,859,911

$6,217,038

57.25

NT

78

$2,604,834

$1,583,368

60.79

WA

603

$21,402,901

$12,106,120

56.56

Tas

244

$8,993,501

$4,642,584

51.62

Total

7,416

$260,052,545

$148,363,919

57.05

 

Personal insolvency agreements

There were 197 personal insolvency agreement estates finalised in 2017–18 by registered trustees. Unsecured creditors received an average of 2.12 cents for every dollar they were owed. Personal insolvency agreement estates finalised by The Official Trustee are not available due to low numbers. 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: 2017–18

Number of estates finalised during the year

197

Number of finalised estates that have paid a dividend

149

Percentage of finalised estates that have paid a dividend

75.63%

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

2.80

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

2.12