On 1 July 2021, the Australian Financial Security Authority (AFSA) released its Personal Insolvency Compliance Program 2021–22, Regulatory Charter and Regulatory Actions Cooperation and Support Policy. These documents underpin AFSA’s regulatory priorities and enforcement obligations for the forthcoming year, particularly in relation to personal insolvency and the Personal Property Securities Register (PPSR). Personal Insolvency Compliance Program 2021–22 Each year AFSA establishes a compliance program based on trends and current issues in the personal insolvency system.

It has been held that the non-payment of debt (even significant and undisputed debt) is not, of itself, sufficient to establish insolvency. There must be more.

ASIC has updated its information sheet on commonly-lodged forms in external administration to cover the new types of external administration introduced by the corporate insolvency reform laws on 1 January 2021.

On 1 July 2021, the Australian Financial Security Authority (AFSA) released its Personal Insolvency Compliance Program 2021–22, Regulatory Charter and Regulatory Actions Cooperation and Support Policy. These documents underpin AFSA’s regulatory priorities and enforcement obligations for the forthcoming year, particularly in relation to personal insolvency and the Personal Property Securities Register (PPSR).

Personal Insolvency Compliance Program 2021–22

The following 10 cases have been reported in our Bankruptcy & Insolvency practice area:

Re Total Truss Systems — Retrospective orders made for liquidators of corporate trustee

The following company law cases have been reported in CCH Pinpoint:

Insolvency: nunc pro tunc orders made for liquidators of corporate trustee

On 3 May 2021, the Treasurer announced that the Morrison government is pursuing further measures to improve Australia’s insolvency framework for both small and large businesses.

As part of the 2020–21 budget, the government announced the most significant reforms to Australia’s insolvency framework in 30 years. These reforms, which commenced on 1 January 2021, created new simplified liquidation and debt restructuring processes for small companies, and has provided directors with the control and flexibility they need to either restructure their business or wind down operations.

On 24 September 2020, the Morrison government announced reforms to Australia’s insolvency framework to better support Australian small businesses, their creditors and employees, in particular businesses facing financial difficulties following the COVID-19 pandemic.

When an individual declares bankruptcy, the trustee-in-bankruptcy (trustee) may be able to claim, and sell, some of the bankrupt’s assets. The trustee can then use the proceeds from the sale to repay any money owed to creditors. Assets may include, but are not limited to, real estate, vehicles, tools, equipment, furniture, bank balances and lottery winnings.

Bankruptcy is one option for dealing with insolvency. Insolvency is the inability for an individual, or company, to pay their debts as and when they fall due. Although bankruptcy can provide bankrupts with relief from the majority of their debts, and essentially allow them to make a fresh start, there are also downsides. This article explores the consequences of declaring bankruptcy for both the bankrupt and their business.

The ramifications of bankruptcy are laid out in the following table: