Dividend payments to creditors in bankruptcies in 2023-24 averaged only 2.42c in the dollar. Registered bankruptcy trustees took in more than $253 million in receipts with proceeds of asset sales at 54% being the main source; and they paid out more than $254 million, of which their trustee remuneration was $74 million and dividends to creditors $50 million and secured creditor payments $69.5m. These numbers are broadly comparable with recent years’ figures.
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AFSA has released its annual administration personal insolvency statistics for 2023-2024. Annual administration statistics | Australian Financial Security Authority
These cover all personal insolvencies administered by each of the Official Trustee and registered trustees.
There were 11,644 new personal insolvencies in 2023-24, an increase of 17.3% from the previous year but still below the previous 10-year average of 21,252.
Numbers for July to October 2024 are low; statistics for November-December 2024 are yet to be released.
Around 90% of bankruptcies are commenced by debtor’s petition; with 10% by sequestration orders made by the court
The Official Trustee administered most new bankruptcies in 2023–24, at 74%, a 2% decrease from 76% in 2022–23.
At the end of 2023–24, AFSA had regulatory oversight of 128 firms and over 200 trustees. Nine firms only (including the Official Trustee) are responsible for administering 75% of all active personal insolvencies.
There were 7,580 bankrupt estates finalised in 2023–24 with unsecured creditors receiving an average dividend of 2.42 cents in the dollar; 0.45c from the Official Trustee, 3.43c from registered trustees.
In contrast, creditors received an average of 50.97 cents/$ in Part IX debt agreements completed in 2023–24, and 8.24c/$ in Part X personal insolvency agreements.
Registered trustees administered more than $253 million in bankruptcy receipts in 2023–24 with asset sales accounting for 54% of these receipts; and more than $254 million in payments, with dividends paid to creditors at nearly $50 million accounting for 19%, trustee remuneration of $74 million accounting for 29%, and secured creditor payments accounting for another 21%.
Receipts from voidable transactions remain low – $14.5m in 2023-2024 (5%), down from $16.8 the previous year.
There are no comparable statistics provided in relation to corporate insolvencies.
See also Personal insolvency numbers remain low – AFSA report – Murrays Legal
