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In Australia, when an individual wishes to declare themselves bankrupt, they are required to complete and lodge a Debtor’s Petition and Statement of Affairs with the Official Receiver at the Australian Financial Security Authority (AFSA).

In 2022, AFSA merged the Debtor’s Petition and Statement of Affairs to create a new form called the “Bankruptcy Form”.  

A separate Statement of Affairs continued to be used by debtors who had been made bankrupt by court order; Creditor’s Petition.

With effect from 1 September 2025, the Bankruptcy Form has been replaced with a new Debtor’s Petition and Statement of Affairs to better align with the requirements of the Bankruptcy Act.

If you are in financial difficulty and wish to discuss the options available for dealing with your debts, please contact Helen Joyce at Bluestone Advisory on 1300 001 710. We offer an initial free consultation to access your situation and advise you as to the options available to you.

Australian Financial Security Authority (AFSA)  AFSA’s latest provisional statistics show 1,116 Australians entered personal insolvency in October, down from 1,169 in September and higher than 1,009 in October last year.

Of the 1,116, 318 individuals were involved in a business as a sole trader, in a partnership or as a director in a company.

The most common industries where an individual worked were:
• Construction
• Health care and social assistance
• Other services.

For more information about our monthly statistics, visit our website:  
You can read their full report here 

On 22 September 2025, the sentencing decision in the matter of The Director of Public Prosecutions v John Michael Voitin, a Melbourne-based lawyer, was handed down in the County Court of Victoria.

For the offences of perverting the course of justice and obtaining financial advantage, His Honour Judge Meredith  issued an overall sentence of 3 years' imprisonment, with a minimum of one (1) year to be served.

In handing down sentencing, His Honour made the following remarks:

• “As a legal professional, dishonesty and fraud-based offending is a serious matter, especially as Voitin used his capacity as an officer of the court to deceive the justice system, his clients and their creditors.
• Under such circumstances, general deterrence is an important factor to communicate to other members of the legal profession that this conduct is unacceptable and shall be punished.”

This matter was the result of a joint investigation between AFSA and the Australian Federal Police. These investigations identified an elaborate scam targeting business owners experiencing financial difficulty or bankruptcy.

AFSA welcomes the Court's decision with AFSA Chief Executive Tim Beresford, saying:

• “Mr Voitin engaged in activities with the intent to defraud, submit false declarations and unlawfully dispose of assets.
• Unfortunately, there are people who deliberately manipulate the system to their personal advantage, harming individuals who are experiencing financial difficulty.
• AFSA is committed to ensuring that individuals or businesses who exploit the credit system at the expense of Australians experiencing financial vulnerability are investigated and held accountable.
• This case highlights the need for people experiencing financial difficulty to ensure that any financial advice comes from a qualified and trustworthy source.”

A spokesperson for the Australian Federal Police said:

• “This scheme was deliberately set out to exploit the financial and legal system. It disadvantaged honest businesses and the broader Australian community.
• Anyone involving themselves in these types of practices is engaging in criminal behaviour and you will be caught.”