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ARTICLE · 08 OCTOBER 2025

Understand the consequence of bankruptcy in Australia

Worrells
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Rising corporate insolvencies are expected to increase personal bankruptcies, highlighting the need to understand bankruptcy's consequences.

AustraliaInsolvency/Bankruptcy/Re-Structuring
Scott Andersen
Scott Andersen
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Australia has recently experienced a rise in the number of corporate insolvencies.

From this, company directors are increasingly finding themselves exposed to personal liability for the debts of their insolvent companies, and in turn, this is expected to lead to a surge in personal insolvencies.

Australian Financial Security Authority (AFSA), which is responsible for regulating the personal insolvency industry, predicts that personal insolvencies will increase by approximately 11% from 13,400 in 2024-25 to 14,950 in 2025-26.

Accordingly, it has never been more important for people in business to be aware of the consequences of bankruptcy so that any myths are dispelled before seeking further assistance.

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