Best Bankruptcy & Debt Lawyers in Auckland

About Bankruptcy & Debt Law in Auckland, New Zealand

Bankruptcy and Debt law in Auckland, New Zealand, focus on helping individuals or businesses unable to repay their debts. When one declares bankruptcy, they are legally declaring their inability to pay off debt. This process involves the liquidation, where your assets are sold off to pay your debts, or the rehabilitation – where the debtor proposes a plan to meet obligations.

Why You May Need a Lawyer

You may need a lawyer when: dealing with complex financial situations, you are a business owner contemplating bankruptcy, you have substantial assets you want to protect, you want to dispute debts claimed by creditors, or you want to understand the long-term effects of bankruptcy and alternatives. A lawyer will provide guidance, help you understand your rights and provide legal representation if needed.

Local Laws Overview

In Auckland, the Insolvency and Trustee Service manages the administration and regulation of the bankruptcy process. You may be declared bankrupt voluntarily, or a creditor can apply to the High Court to make you bankrupt. Bankruptcy normally lasts for three years. Throughout this time, you may have restrictions placed upon you, such as not being able to manage a business without informing those involved of your bankruptcy.

Frequently Asked Questions

1. Can I be made bankrupt without my knowledge?

Yes, creditors can make a bankruptcy application to the court and you can be declared bankrupt if you do not respond or defend the claim appropriately.

2. What happens to my assets when I'm declared bankrupt?

Your assets are usually taken over by a trustee and may be sold in order to repay your creditors. In some circumstances, you may be able to keep certain assets.

3. Can I erase all my debts through bankruptcy?

Not all types of debts are erased in bankruptcy. For example, secured debts, student loans, fines, penalties imposed by courts and debts acquired through fraud are typically not written off.

4. What is the impact of bankruptcy on my credit rating?

Once you're declared bankrupt, it will appear on your credit report for several years. This may affect your ability to get credit or loans in the future.

5. Are there alternatives to bankruptcy?

Yes, alternatives may include a Debt Repayment Order, a Summary Instalment Order, or negotiating a compromise with your creditors.

Additional Resources

There are numerous resources available for those seeking advice about bankruptcy and debt. The Insolvency and Trustee Service's website offers useful information and resources pertaining to both personal and business insolvency. The Citizens Advice Bureau also provides free, independent, confidential advice about various forms of debt.

Next Steps

If you find that you need legal assistance in bankruptcy and debt in Auckland, the first step is to seek professional advice. Contact a local legal aid provider, the Law Society or a private attorney specializing in bankruptcy. Before making any significant decision, ensure that you understand the implications, the process, and your rights.