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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) has released the August Personal Insolvencies report.

AFSA’s latest provisional stats show 1,169 Australians entered personal insolvency in September, up from 1,095 in August and 1,025 in September last year.

Of these, 323 individuals were involved in a business as a sole trader, in a partnership or as a director in a company.

The most common employment industries where an individual worked were:  
* Construction
* Health care and social assistance
* Transport, postal and warehousing.

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

Jon Adgemis was once a rising dealmaker and ex-KPMG partner, who pivoted into the hospitality sector in Sydney. He founded a hospitality group, Public Hospitality Group Pty Ltd (PHG) which acquired numerous pubs and hotels across Sydney and Melbourne during the pandemic era. 

What went wrong

• Debt-fuelled expansion: PHG amassed substantial borrowings, often via high-interest private credit and personal guarantees.
• Insolvent trading allegations: The Administrators of PHG allege that the pub group traded while insolvent as far back as 2021.

Personal Insolvency

• Adgemis’s personal liabilities are estimated to be approximately $1.8 billion, including approximately $160M owed to the ATO.
• In June 2025, Adgemis proposed a Personal Insolvency Agreement (PIA) to settle his debts, offering creditors a very minimal return of 0.15 - 0.17 cents in the dollar.
• The Australian Taxation Office (ATO) and the Australian Financial Security Authority (AFSA) intervened, calling the proposal “manifestly unfair and inconsistent with community expectations” and citing concerns over minimal returns for creditors and possible misuse of insolvency processes.
• There were also concerns that Adgemis was continuing his lavish lifestyle, having the benefit of luxury cars, a yacht, and multi-million dollar homes, despite his debt crisis.
• A creditor commenced bankruptcy proceedings against Adgemis.
• Prior to the hearing at which the Creditor’s Petition was to be heard, Adgemis lodged a Debtor’s Petition with the Official Receiver. This was rejected by the Court.
• On 3 October 2025, the Federal Court made a Sequestration Order against Adgemis, declaring him bankrupt as of 18 November 2024.
• Creditors face very large losses - unsecured creditors are likely to recover next to nothing given the scale of the debts and lack of assets.
• The case has become a flashpoint for scrutiny of the private-credit sector and how personal guarantees and high-risk lending are structured.
• For Adgemis personally, the bankruptcy order restricts his ability to run companies, limits his asset use, and gives a trustee broad powers to investigate his finances.

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.”