Bankruptcy & No Asset Procedure

What is Bankruptcy?

Request an Appointment

Bankruptcy is a legal process for people who cannot repay their debts as they become due.

Being bankrupt stops your provable creditors from attempting to collect debts from you. Bankruptcy covers most debts, however it doesn’t cover student loan debt and court fines.

In bankruptcy, an Official Assignee (an official person assigned by the courts) is given control over all of your assets. They will administer and distribute the proceeds from the sale of your assets for the benefit of your creditors. The normal period of time you have to remain bankrupt is three years.

There are two different types of bankruptcy:


A person can voluntarily apply for bankruptcy known as a debtor’s application.


A person can be made bankrupt by a creditor, also known as a Court Appointed Bankruptcy.

Before going bankrupt we recommend seeking advice from the experts at ABA as there are alternatives to bankruptcy which may suit your circumstances better.

Request an Appointment

Hardship Relief

Request an Appointment

If you have no assets and owe the Inland Revenue money, then one of the alternatives to bankruptcy is to request Hardship Relief directly from the Inland Revenue.

The No Asset Procedure (NAP) available through the Insolvency and Trustee Service, is an option if you owe less than $47,000, have no assets and have no extra money to make repayments on debt. The advantage of this is that it doesn’t have as many restrictions as bankruptcy.

A NAP usually lasts for one year. When you enter a NAP, your debts are cleared, and your creditors don’t get paid anything. You can only enter into a NAP once, so if you have already completed a NAP, bankruptcy is your only other insolvency option.

ABA can prepare a Hardship Application and No Asset Procedure (NAP) on your behalf.

Lets talk

Email Us
Call Us
Chartered Accountants NZ and Australia logo
Xero Gold Champion Partner
Crystal Payroll
Smart AR