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Bankruptcy & debt law in Tauranga, New Zealand functions under the Insolvency and Trustee Service of the national Ministry of Business, Innovation and Employment (MBIE). This body handles situations where a person, company, or entity cannot meet their financial obligations. Bankruptcy refers to the legal state of an individual who cannot repay their debts, while debt pertains to the sum of money owed by individuals or companies.
Complexities around debt and bankruptcy law make it important for individuals to seek legal assistance for cases such as filing for bankruptcy, negotiating debt repayment plans or understanding the implications of insolvency on personal or business finances. Lawyers ensure that all legal paperwork is correctly filed, all deadlines are met, and the entire process is legally sound.
The key aspects of local bankruptcy laws involve the undertaking of a financial means assessment, protection from personal liability for certain debts during bankruptcy, and a three-year bankruptcy term in general. Debt laws, meanwhile, cover matters such as secured and unsecured debts, debt consolidation, debt agreements, and the legal actions that creditors can take against debtors.
Individuals can file for bankruptcy voluntarily by submitting a formal application to the Insolvency and Trustee Service. Alternatively, a creditor who you owe NZD1,000 or more can file a bankruptcy application against you.
Bankruptcy in New Zealand typically lasts for three years. However, the timeframe can be extended in certain circumstances.
Bankruptcy will affect your credit score for several years and can make obtaining loans or credit more difficult. Details of your bankruptcy will remain on public record for a period of time.
While bankrupt, you may be unable to take an active part in the management of a business without the permission of a Trustee.
When you become bankrupt, your assets may be used to repay creditors. Your income will also be assessed, and if it exceeds a certain amount, you may need to make compulsory income contributions.
The Insolvency and Trustee Service offers various resources, including guides on the insolvency and bankruptcy process. Additionally, Community Law Centres provide free legal advice and resources specific to Bankruptcy & Debt Law. The New Zealand Law Society can also recommend specialized law firms in this area.
If you are considering filing for bankruptcy or need guidance on debt-related issues, your first step should be to consult with a legal professional proficient in bankruptcy and debt law. They can help you understand your rights, responsibilities, and the best course of action for your unique situation.
