ARTICLE · 12 NOVEMBER 2020

Insolvency appointments remain depressed

Worrells

Explore more from Worrells

There has been significant growth in areas that do indicate a wave of insolvency appointments is likely on the horizon.

AustraliaInsolvency/Bankruptcy/Re-Structuring

Author LinkedIn connections

HOWEVER, A RANGE OF INDICATORS SAY AN UPTICK IS IMMINENT

While insolvency appointments remained depressed in the September quarter of 2020, we are starting to see signs of growth in appointments. And a range of indicators are pointing towards a significant uptick in insolvency appointments from early next year.

Personal insolvency
The Australian Financial Security Authority's (AFSA) personal insolvency statistics for the September quarter of 2020 recorded an overall drop of 50% compared to the September 2019 quarter. This is a record drop, exceeding last quarter's then record fall by 15%.

As would be expected, all three forms of appointments saw significant declines, with both bankruptcies and personal insolvency agreements reaching the lowest level since record keeping began in 1986. At the same time, debt agreements were at their lowest level since 2006.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Related Articles

Can You Access Super To Pay Off Debt?

AustraliaInsolvency/Bankruptcy/Re-Structuring

Winding Up Application: What Happens And How To Stop Them

AustraliaInsolvency/Bankruptcy/Re-Structuring

Stonegate Legal

TGIF 9 October 2026 – Queensland Court Of Appeal Restores The Reach Of All-Assets Security

AustraliaInsolvency/Bankruptcy/Re-Structuring

Corrs Chambers Westgarth

Australian Restructuring And Insolvency Guide Series – Part 6

AustraliaInsolvency/Bankruptcy/Re-Structuring

Ironbridge Legal

Bankruptcy Restrictions In Australia

AustraliaInsolvency/Bankruptcy/Re-Structuring

Stonegate Legal

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Insolvency/Bankruptcy/Re-Structuring
- Insolvency/Bankruptcy

Related Comparative Guides

Comparative Guide

Restructuring & Insolvency

See more popular content from

Insolvency/Bankruptcy/Re-Structuring

Voluntary Administration In Australia

Voluntary Administration under Part 5.3A of the Corporations Act 2001 offers Australian companies a formal insolvency process where an independent liquidator investigates whether the business can be preserved. During this process, most unsecured claims are stayed while creditors, employees, and secured parties navigate distinct rights and exceptions. Understanding the strategic timing for directors, the decision-making power of creditors, and the specific protections available to employees proves critical t

AustraliaInsolvency/Bankruptcy/Re-Structuring

Stonegate Legal

How Much Income Can A Bankrupt Earn?

Under Australia's bankruptcy system, there is no limit on how much income a bankrupt person can earn, though they may be required to make compulsory contributions if their after-tax income exceeds statutory thresholds. This article examines how income contribution calculations work, what thresholds apply based on the number of dependants, and why the system balances creditor interests with maintaining a reasonable standard of living for bankrupt individuals.

AustraliaInsolvency/Bankruptcy/Re-Structuring

Trust Structures And Asset Protection During Bankruptcy

Trust structures can protect assets held for others, but they do not shield a bankrupt person's own entitlements, trustee indemnity rights, or transfers made to defeat creditors. The deed, financial records and transaction history determine whether trust property remains outside the bankruptcy estate or becomes available to creditors through beneficial interests, indemnity claims, or voidable transaction recovery.

AustraliaInsolvency/Bankruptcy/Re-Structuring

Stonegate Legal

Bankruptcy Restrictions And Breach Consequences

An undischarged bankrupt faces strict legal obligations including cooperating with trustees, disclosing all property and financial changes, and obtaining consent before international travel. What are the criminal penalties for breaching these restrictions, and how can early disclosure and proper legal advice help navigate trustee negotiations more effectively than denial or delay?

AustraliaInsolvency/Bankruptcy/Re-Structuring

Stonegate Legal

Clawback Risks In Bankruptcy Explained

Bankruptcy trustees can challenge pre-bankruptcy transactions under sections 120, 121, and 122 of the Bankruptcy Act 1966, targeting undervalued transfers, creditor-defeating arrangements, and preferential payments. Understanding the statutory tests, timing rules, and evidentiary requirements is essential for recipients facing clawback demands, as market value alone does not guarantee protection and poor documentation can prove decisive.

AustraliaInsolvency/Bankruptcy/Re-Structuring

Stonegate Legal

Sequestration Order And Bankruptcy Notices Explained

When a creditor seeks to make an individual bankrupt through a sequestration order, the process involves strict statutory requirements including judgment thresholds, bankruptcy notices, and court scrutiny. Understanding the procedural steps, potential defects, and strategic alternatives is essential for both creditors pursuing debt recovery and debtors facing insolvency proceedings.

AustraliaInsolvency/Bankruptcy/Re-Structuring

Stonegate Legal

Recovering Company Debts Using Statutory Demands

A statutory demand is one of the fastest and most powerful tools for recovering undisputed debts from Australian companies, engaging insolvency provisions that give debtors just 21 days to respond. While it creates significant commercial pressure that often leads to payment or negotiated resolution, it must be used carefully for genuinely undisputed debts to avoid being set aside and incurring adverse costs.

AustraliaInsolvency/Bankruptcy/Re-Structuring

Stonegate Legal

Small Business Restructuring In Australia

Small business restructuring under Part 5.3B of the Corporations Act 2001 offers eligible insolvent companies with liabilities under $1 million a streamlined path to propose creditor compromises...

AustraliaInsolvency/Bankruptcy/Re-Structuring

Stonegate Legal

Winding Up Application: What Happens And How To Stop Them

A winding up application seeks a court order placing a company into liquidation. An unanswered statutory demand commonly creates the presumption of insolvency used to support it. The ordinary demand period is 21 days, and the current statutory minimum is $4,000. A company challenging the demand must apply, file its supporting affidavit and serve both documents within the statutory deadline.

AustraliaInsolvency/Bankruptcy/Re-Structuring

Stonegate Legal

Bankruptcy Restrictions In Australia

Bankruptcy restrictions in Australia govern what undischarged bankrupts can and cannot do during the typical three-year bankruptcy period. While most people can continue working and earning income, they must obtain written trustee consent before overseas travel, disclose bankruptcy for transactions above the indexed threshold, and refrain from managing corporations without court leave. Understanding these restrictions—from employment and business operations to credit disclosure and asset dealings̵

AustraliaInsolvency/Bankruptcy/Re-Structuring

Stonegate Legal