If you have decided bankruptcy is your best choice, don’t delay.  The earlier you start, the sooner you will be discharged and able to move on.  If the facts are simple, it can happen quickly – within a few minutes, in many cases.

Bankruptcy wipes your debts and gets creditors off your back.  The relief can be enormous.  The Official Assignee, part of the New Zealand Insolvency & Trustee Service, acts as trustee, administering the debts that you incurred up to the date of your bankruptcy.  You get a notice to show creditors that you are bankrupt, so they deal with the Assignee rather than you.

The only assets you can keep under present law are furniture and personal effects to a total value decided by the Official Assignee; $1000.00 in cash maximum and tools of trade with a value at the discretion of the Official Assignee.

You are normally “discharged” from bankruptcy after three years although you can apply to the Court for an earlier discharge.  You are no longer legally responsible for most or all of the debts you faced at the time of the bankruptcy.  However, you are still responsible for the debts you incurred after the date of your bankruptcy.  You are still personally responsible for liable parent contributions or maintenance and child support commitments, Court fines or reparation orders.  After you become a bankrupt a notice advertising your bankruptcy will be published in the local newspaper where you live and where the majority of your creditors are.

Once you become bankrupt, creditors are usually prohibited from continuing or commencing any legal action to recover money owing.
Restrictions during term of bankruptcy:

• You must disclose to the Official Assignee any changes of address or employment and fulfil any other duty imposed on you by the Insolvency Act 1967. 
• You must not be self-employed, employed by a member of your family or be involved in the management of a company or business. 
• You must not leave New Zealand without obtaining consent of the Official Assignee. 
• You must not withhold information sought by the Official Assignee. 
• You must not raise credit exceeding $1000.00 without disclosing that you are an undischarged bankrupt. 
• If you are in employment the Assignee will work out a budget with you to see how much can go to your creditors.  If your only income is from a benefit, none will go to your creditors.  Anything your domestic partner earns remains theirs.