Personal Bankruptcy

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Personal Bankruptcy is a legal remedy available to New Zealanders who cannot repay their financial obligations when they are due.  In Personal Bankruptcy, your creditors are prohibited from attempting to collect debts from you and once the bankruptcy period has expired (generally after three years) your debts will be considered resolved.  Personal Bankruptcy covers most forms of debt, but there are some exceptions that will still need to be paid.  A person can either apply voluntarily to enter bankruptcy, or bankruptcy can be compelled upon a person by a secured creditor.  While there are some legal restrictions placed upon a bankrupt person, in general bankruptcy is a positive process and can sometimes be the only viable option for satisfying unmanageable debts.

In order to enter Personal Bankruptcy in New Zealand, your debts must exceed $1000 – there is no upper limit to how much debt you can own.  While many debtors enter Personal Bankruptcy voluntarily as a means to resolve unmanageable debts, it is also possible to be made bankrupt by the courts upon application from one of your creditors over an unpaid debt.

If you cannot repay what you owe, Personal Bankruptcy will offer you the following advantages:

  • All unsecured debts are wiped,
  • Student loans are voided,
  • Creditors are prohibited from seeking payment,
  • You may retain essential personal and household items,
  • You may retain tools for work,
  • You may retain a vehicle up to the value of $5000,
  • You may retain money up to $1,000,
  • Debt related legal proceedings, both ongoing and impending, will be halted.

While entering bankruptcy is a sure-fire way to resolve your debts and move on with your life once the three year period has expired, there are some legal restrictions it will place upon you that you should be aware of.  During the three year bankruptcy period, you will be restricted from:

  • Being director of a limited liability company,
  • Incurring credit of more than $1000 without making the creditor aware in writing of your bankrupt status,
  • Concealing assets,
  • Leaving New Zealand without gaining permission,
  • Entering into or continuing to take part in the management or control of any business,
  • Being employed by a relative or by an entity owned, managed or controlled by a relative.

As such, Insolvency Guardian also offers professional advice and assistance regarding possible alternatives to Personal Bankruptcy, including Summary Instalment Orders and No Asset Procedures.

With the help of professional advice and assistance from Insolvency Guardian, you can overcome your debts once and for all.  Our Personal Bankruptcy experts can walk you through the best means for you to resolve your debts based on your specific circumstances.  Plus, Insolvency Guardian offers our industry-leading services at New Zealand’s lowest prices.  Personal Bankruptcy services from Insolvency Guardian are a high-quality and offered at an amazingly low price.  You can resolve your debts!  Contact us today for a free initial consultation with complete confidentiality to find out more.