Insolvency No Asset Procedure
An opportunity to sort out your financial situation.
Many of you are doing your best in managing your finance and paying off debt. However, in some cases the level of debt makes it almost impossible to stay ahead. You may be finding that all you can manage to pay is the minimum payment, but, in reality, the sum you owe is not really reducing and your debt may in fact be rising.
There may be a way out.
A No Asset Procedure (NAP) offers a once in a lifetime opportunity to clear your debts if you have no way of paying them.
A NAP usually lasts for one year. When you enter the NAP your debts are cleared. Your creditors (the people or organisations you owe money to) don’t get paid anything.
The main points are:
- You may enter a NAP if you owe between $1,000 and $47,000 in unsecured debt
- You must have no way to pay any of your debt
- You have nothing that you can sell to help make payments, including money in a bank or other fund (note there are exceptions)
- You may have some debts that are not covered by NAP
- You can only enter into a NAP once — if you’ve already completed a NAP, bankruptcy is your only other insolvency option
This material has been prepared for information purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your normal source of expert advice before acting on anything or contact ABA Chartered Accountants if we can assist you in any way.