Summary Instalment Orders
This is a formal agreement with creditors that you will pay some (if not all) the money owed. It lasts for three years (or five years in some circumstances) and means you have to pay agreed instalments. How much you pay is negotiated with the creditors who cannot take further action as long as you follow the agreement exactly. Application for entry is made to the Official Assignee. Management is by an Approved Supervisor.
Granting a Summary Instalment Order
You or any of your creditors (with your consent) may apply for your entry into a Summary Instalment Order. The Official Assignee may grant a Summary Instalment Order if:
- Your total unsecured debts (excluding student loans, fines, penalties, and reparation orders) are less than $NZ40,000
- You are unable to pay those debts immediately.
Before granting a Summary Instalment Order, the Official Assignee will allow you and your creditors to make representations about the making of the order.