No Asset Procedure
This is a relatively new option available since December 2007 and is not formal bankruptcy. Application for entry is made to the Official Assignee who then administers the No Asset Procedure in much the same way as a bankruptcy. You can only use the No Asset Procedure once.
Applying for a No Asset Procedure
Applications are made to the Official Assignee, either electronically or manually. An application and Statement of Affairs must be completed to a standard acceptable to the Official Assignee.
To qualify for entry you must:
- have no realisable assets (realisable assets exclude cash up to $NZ1,000, a motor vehicle up to $NZ5,000, tools of trade, and personal and household effects)
- not previously been admitted to the no asset procedure
- not previously have been adjudicated bankrupt
- have total debts (excluding student loan) not less than $NZ1,000 and not more than $NZ40,000
- complete a means test showing you have no means of repaying any amount towards your debts.
The Official Assignee can refuse entry into the NAP if:
- your creditor(s) object to entry; or
- bankruptcy proceedings have been initiated and the likely outcome for the creditor would be materially better if the proceedings continued; or
- you have concealed assets; or
- you have committed an act that would be an offence under the Insolvency Act 2006 were you bankrupt; or
- you have incurred debts knowing you had no means to pay them.