Going bankrupt in New Zealand while living in Australia. Can anyone share their experience?

Hey guys, as someone who has declared bankrupt in NZ. I can tell you how the process works in practice.

1. You get sent a new IRD Number in the post
2. Takes 3 years to be discharged and is noted on your credit report for another 4 years. So, for seven years you can't borrow any money because no bank can legally give you money until it is dropped off your record.
3. You will be advise to shift your bank accounts to Kiwibank. If you try to open accounts with other banks e.g. ASB, ANZ you can. But a red error comes on their screen advising the CSR that you have gone bankrupt. Even after its dropped off your record (which is illegal). You have to get the manager of the branch to manually remove it. No one tells you about that!
4. Also, Australia 3 credit agencies are the same as NZ. So, assume it follows with you.
5. Applying for jobs that do credit checks. Once bankruptcy drops off your record. I would advise to get your credit report from the 3 major credit agencies to make sure its absolutely removed.

However, some companies will still ask you have you ever declared bankrupt? If you answer yes (even though its dropped off your record) you won't get an interview.

So I will advise you to say no to that question or work for a company that does not ask question during their application process.

Hope this helps.

Going through the same thing! I have the same questions myself. Man this economic environment is yuk! Have you had any good advice?

hey boss

I read a bit on bankruptcy a while back & also noted some comments here Apparently NZ/Australia the credit agency is the same, so your credit history in NZ will follow you to Australia

So if you do declare bankruptcy it could hurt you in future in Australia if you want to get loans etc

We are in exactly same position, I am so relieved that we are not the only ones. Lost everything in NZ (once really well off) and now here working for $20 per hour just surviving, cant actually pay back any debts but terrified to talk to anyone as going back would be the worst outcome.

Well it sure is good to know that there are other kiwis in similar shoes here in Aus. I had bad credit history but I have found that as long as you don't show ur NZ passport as ID for loans, you should be ok.

hi, I am so glad you asked this question, we are struggling in nz, we have a beautiful home in nz but cant afford to pay it now, we havent got to the point that you have yet but its definitely heading that way. I was going to keep our home and investment property and rent them out but after reading through this website i think we will sell our home and just start fresh in Australia. Really scared to move because i love nz so much but dont want to struggle anymore.

My suggestion is to weigh up the options, calculate how long it would take to pay off the debts as oppose to bankrupcy. personally i would take bankrupcy, just so i could live again, put it down to lessons learnt and move on??? all the best of luck with everything.

hi yes I too am a kiwi living in australia and filed to go bankrupt in new zealand from australia. I went to frankston council to get help doing it, so if you go to your nearest council and ask to see someone there that can help you file to go bankrupt. Once New Zealand received my forms I was declared bankrupt within three days. I applied for a car loan when I moved to Australia once I had a job and got it. Good luck! P.s. Dont mention your bankrupt when applying for a loan. Hopefully they wont do a credit check for overseas but if they did it didnt stop them from giving me a loan in Australia.

Hi, I am currently bankrupt here in NZ & living here in Auckland. My partner & I would like to move to Australia to start fresh, live, work & save for 5 years, is there anyone out there who have moved to Australia, while still bankrupt? I just want to know if they have come across any problems, eg: can't be allowed back into the NZ etc.... Thank you.

My partner and I are in the same boat with one of us bankrupt and having lost our house and business.We are looking at the move to Oz to get back on our feet. I am earning $36k here but can earn $50-70k in my profession. Factor in the current exchange rate and thats $65-90K p/a. We hope to make the move in the new year....onwards and upwards

Things in Nz just too hard...business went horribly wrong and got caught with leaky home owe bnz 3 mill and it's just all over ....bankruptcy will happen but I am already in australia and earning a high salary but not officially bankrupt yet...my two questions are....I still have family in Nz and so want to go home regularly...anyone heard of hassles with OA and do u really have to tell them evrytime you enter leave Nz.........second question is I can earn lots of money in my profession in austrailia so will the OA hassle me about what I can keep or do they just leave u alone if u living offshore

I am sad to know there are others in the same boat as me. I lost my marriage & walked away from everything to come to Oz to save my diminishing sanity, all due to debt. I would like to go bankrupt in NZ but they will put all the debt on my ex which isn't fair on her. I am trying to find out the effects on us both if we go bankrupt.

Does anyone know if, after bankruptcy I could return to NZ for a holiday & be allowed to return to Oz? The upside is Oz pays well & I can send home NZ$2,000 a month for my mortgage. Monty Python sang it right, you need to 'always look on the bright side of life'.

Good luck :^)

Well it seems there are a lot of kiwis here with the same issue. Myself and partner moved to Oz in May and are doing so much better here but can't afford to pay our debts back in NZ. Unsure what to do and considering bankruptcy in NZ but unsure how it will affect us. Has anyone found anything out about this yet?

My friend went to australia from NZ, she isn't in debt (unlike me) but when she asked at NAB bank if she needed to provide a copy of her (good) credit file, she was told by the bank manager there was no need; as makes no difference to them as 'what happens outside of australia, stays outside of australia' even though NAB as part of nz banking (which he said its treated as entirely separate).

hope that helps :-)

Hi Guys

Sad to know lots of kiwis struggling in NZ,Guys I would like to share a true and another sad story about my younger brother who is a NZ citizen and had a business in Christchurch.As a result of very unfortunate things he has lost $6,80,000 dollors in business and sold the business in a big loss for $200,000 where he had a business bank loan of $3,80,000.If he would have paid that $200,000 to bank but still he owes money to them and they will bankcurpt him if he does not paid in full,So he left NZ with that money to another country.Now he wants go to Australia and start a new life with his newly born twin babies.Question is can He enter in Australia with out any charges.....? he is away from our family first time we really miss him,if he come backs to Aussie we can meet him often.I really appreciate if some one can share the information to me.

Hi, WOW!! So many people with the same issues! We lived in CHCH NZ for 10 years and after the earthquake everything went from bad to worse! We have left NZ, with very good intention to pay our $40,000 debt back, but are struggling to keep up with the $3000 a month minimum repayment plan! We want to move to OZ now and want to start a fresh!

I have made the assumption after reading all these comments and many more, that credit does not suit me, I used to have 6 credit cards, car loan, house loan, and loved all those shiny adds saying interest free, deferred payment for 2 years etc...

Anyway I think I have decided not to pay as I CAN NOT!! And not ever have credit again! rent a house, no credit cards unless they are debit cards and live like that! And hope after 5-7 years if I change my mind and want to buy a house then I can! Is anyone on the same page as me!?

I am a 25 yr old mother of 4 living in NZ, my husband is doing an apprenticeship and working also as a carpenter. I have been speaking to family members about moving to Oz because we just aren't surviving in our country anymore, quite sad really that our country isn't able to look after our own.

My question is: Is it possible for my husband to transfer his apprenticeship over to Oz? because he's said that he wants to finish it which i understand but if we could move and he would be able to do that - that we be so cool, all this financial strain is also putting my marriage at risk as it is just too much to contend with, i want to keep my marriage of course, and i want to be able to live and to look after my children and i want to go shopping without having to calculate all the time. I am not currently employed but i have been searching and no luck as of yet, i am a hard worker if given the chance.

Our government expect people to work but they can't provide any jobs, i know my husband is pretty stressed about our financial situation also but if i could maybe also find work in Oz it would be the start of a new beginning for us, something that we've wanted for so long. Does anybody have any suggestions?

Restarting in Australia isn't so hard if you get on with it as soon as you decide that's what you want to do. It pays to do it before declaring bankruptcy as you do not have to lie on some forms especially insurance and some rental forms. renting is hard in Brisbane in reasonable area's so you will need references and a CV plus your employment contract or proof of work and income! There are 40,000 new jobs coming on stream over the next two or three years in Queensland, 3000 skilled and unskilled on the market from the first of Feb 2012. I am managing a company here and follow these things closely, however I am about to go bankrupt in NZ due to the GFC, I have been self employed in NZ for 30 years and have never had personal defaults but when the property market crashed the banks who used to shout free trips to Aus to watch the rugby when they wanted our business ran a mile and now treat us all as crooks as if we caused it all. your debt to the bank will most likely have been insured or underwritten so they have lost little if anything in most cases, but they will pursue you mercilessly to the detriment of your life family and marriage. I have tried to rectify and work with the banks for the last five years and it has got me know-where. now looking at bankrupting myself to save my,life,sanity,marriage and family.

From what I understand the OA is there to see you get a fair deal and can keep things like your family support and enough money to live with dignity, if you do a deal with a bank they will keep you on the hook forever and wait for a relative to die and leave you money or some windfall then take it. the banks are abusing the bankruptcy system, it is meant for bad debtors who can't or won't manage their money not for people who have worked hard all their life and been caught up in the worst financial failure the world has ever seen, Caused by Banks! ( yep I am still mad).

If you are bankrupt in NZ you are not bankrupt in Aus however you will still need to deal with the OA in NZ, they will not stop reasonable travel to see family etc as long as you are not living the high life and abusing the system, for most of us we are restarting all over again and by the time you pay your rent,out goings and car expenses it is likely you will have just enough to get by and the OA will leave you alone and check on you once a year.

I don't know about the apprenticeships transfer but if you are prepared to work get over here get a white card, transfer your drivers license and if you become permanent and have kids you get medicare and a child allowance.

I personally can't see NZ getting on it feet for ten years to come, it will be in the financial doldrums for a long time and that means tight banks and low wages plus high costs. I hope this helps someone as there seems no other way to find these things out. Good luck to all.

been reading the replies on here but still have 1 question. i have an outstanding personal loan (only $8k). will i be stopped if i go back and visit nz from oz?

Hi there Can someone tell me there experience dealing with the OA in consideration of going bankrupt and possibility of weather they would allow me to move and start a new life in Australia

So pleased that I found this site - had so many sleepless nights lately. We are surviving at the mo and would continue to do so - but there is looming pressure in the back ground from the NZ tax that will see us forced bankrupt. The only ones that will be left owing money.

Anyone else been forced by them?

Im am thinking of going bank rupt, have bad credit for 3 or so years. Its not that long really. I would love to work & live in Aus. My Mother as assisted a few families in bank ruptcy, these families moved to Aus straight away and frequently travel between NZ & Aus. They are stoked they moved to Aus. Go to the community law office or the sallies army and they will help.

Hi Guys, just been bankrupted recently over in NZ but am here now in Oz - does anyone have any experience about the OA chasing after you if you've got a Home Loan here in Oz?

Hi guys,

Carolyn Weston is a NZ TV journalist doing a current affairs piece on Kiwis moving to Australia. If anyone is interested in talking to her about moving to Australia because of messy circumstances in NZ (money or otherwise), let me know by emailing hello@movetoaustralia.net and I'll pass you her email address. This is a great opportunity to let the NZ government know what's driving you away!

Grace

I would also like to get some information please? We have been living in Australia now for a year. After the economy crashed in NZ my husband and lost our business and decided before we loose everything we along with our kids moved to Australia to pursue a better life. We at first paid our creditors in NZ but after a while it became hard to try and do it all and it doesn’t matter how much we invested back in NZ it was just never enough... so we stopped. It was okay until a couple of days ago when the people started to haunt us again.... so my mind is working in overdrive and would really appreciate other peoples opinion and experiences please. I know the downfall with bankruptcy but I think if we don’t file for it our creditors will.

Thank you all for sharing your stories. Been reading the comments above with tears in my eyes. Funny how the same banks that were basically shoving home loans into our mouths are ruining lives, marriages and families!

My husband and I are considering moving to Aust...been considering for a while. We have managed to hold off bankruptcy and are making payments to veda every week for our car, business and investment property loan. We sold all our properties including our home to keep afloat trying to get our business loan down ( we had to shut the door on our business in the midst of the recession)

I would like to move as the banks clearly won't be lending to us again and I want a home for my family in the near future. Renting is alright but really missing having my own place. Would the banks give a home loan in Aussie if your credit is tainted here? How about we changed our names and then moved there with a new NZ passport? I would love to know of anyones experience.

Thanks.

I was previously bankrupted in NZ 14 years ago by IRD. Went through the process and found the OA is in place to protect me from my creditors. Thats a good thing. They were reasonable to deal with and really believe you deserve a fresh start.

After being discharged I decided to make my fortune in property and business. This plan worked well until it all hit the wall last year with some silly business decisions and a jealous IRD man targeting me to take my business down. I now believe you cant be successful in business in NZ so I moved to Oz, leaving my family in NZ temporarily to try to start a new life for us as an employee.

We lost 4 properties, have sold all our smaller assets at a loss, and only have a car each and some furniture. We're still over 800K in debt to banks from mortgagee sales and IRD mainly. (House worth $540K sold for 300K at mortgagee sale, then relisted a month later for 480K) We were given the balance to pay 150K for an invisible house.

We will both go bankrupt in NZ soon, not sure of the ramifications of that here in oz but really want my family back together in Australia, not NZ. I see opportunity in our future here and cold, doom and gloom in NZ. Im in no hurry to ever return to NZ but still cheer on the Allblacks of course. $15 an hour vs $50 an hour, $2.20 a litre for gas vs $1.30?? 38 degrees vs 25 degrees. Medicare vs welfare, Happiness vs sleeplessness.....Do the math and get out while you still can.

PS Actually met an Aussie here the other day as well and can the last one out of NZ please turn the lights off......no dont worry bout it

Contrary to a lot of the stories here, I didn't go bankrupt while in NZ. That is not to say that I was rolling in it either. I came out of NZ with nothing, basically, other than a suitcase and a 6 year old laptop, and a couple of k in the bank. But I had the advantage of being single with no family. Having a family would definitely have sent me into the wilderness.

NZ is just bad in terms of both career progression and a healthy disposable income (as in it doesn't give you any). Once I hit Australia, things picked up almost instantly. More pay, less cost of living, far less racism (as I tend to say, I get less racist remarks thrown at me in the 3.5 years I have been in Australia than in one trip walking down Queens Street in Auckland), and employers that don't cheat you by stealthily lowering your pay every year.

I won't recommend NZ to non-whites or Americans of any stripe. They HATE Americans over there almost as much as they hate Asians.

We left NZ in 2009 after losing everything, we talked to a few people first as we wanted to make sure we could start again, especially for our children, as the loss was not a result of any wrong doing by us.

We had a good business, that was growing, entered into a lease agreement to move to a bigger site, moved in and the yard began to crumble, it turns out the base course was incorrect and according to the engineers "a disaster waiting to happen", entered in to a legal disute with the landlord, and won the first two court cases.

They appealed and appealed until when the GFC kicked in and sales started to slow, we could no longer afford to pay the legal team, anyway, we lost our home and the business. We were told if you want to leave NZ, pay your debts if you can, if not, leave and declare bankruptcy from Aussie. We have not declared bankruptcy and have not been bankrupted by anyone there.

So life is getting better, we got a mortgage for a block of land ok, and a personal loan for a car, but we are still renting at the moment. No credit cards for 2 reasons, first I am sure the credit card companies like Visa and Mastercard are linked, second, I just don't want to go there again.

People have all sorts of ideas and opinions about what the best thing is to do. At the end of the day it's only money, and yes you may owe it, but those companies have been charging you a lot of fees and intest over the years, and I am also told they are insured for this kind of loss. The most important thing is your sanity and your health. When we came here almost 4 years ago, I had not slept for more than 2 hours at a time for months and months, after our furniture arrived and I crawled in to my bed, I began sleeping for 8-10 hours a night again and started feeling like a person. We don't have much here, but our kids are happy and healthy, the weather is so good for so many months of the year, the family life is so much better. It's the best thing we did, and we should have done it alot sooner. The only bad thing about leaving is the family you leave behind. But they will come and visit, and there is facetime which has been brilliant for us.

As far as owning property here is concerned, if you buy a house here and the Australian bank has the mortgage on the property, they are not going to let any other lender any where near it. We were also told that any lender in NZ you owe money to, would have to get the cooperation of the courts here to serve papers on you, it's not that easy, and very costly.

Don't use your correct name on Facebook, it has been approved in court for legal documents to be served upon someone via Facebook, or so I have heard. Just plan ahead and get your life back, it's worth it. :-)

Hi I am 25 moving to Australia shortly as I have had no luck with finding work in NZ, I have had a run of bad luck recently with debt, but paying it off slowly, once I am settled in Australia I plan on purchasing a car. But what I want to know is will my credit rating from NZ follow me across to Australia? Or will I be able to start a fresh? and receive medibank subsidy etc?

Thanks.

Westpac is chasing me in Aus for repayments on house that went to morgatgee with my ex. For some reason they are now only persuing me. Should I contact the bank? Declare bankruptcy? I can't pay the amount, I'm a single mum raising my children alone with no assistance. I'm afraid the bank and court will take the money I'm earning here. Please give me some advice if you have some.

Hi all

Just wanted to know if i declear bankrupt for a debt in new zealand while living in oz will i be able to go back to nz after three years and not have to pay the debt back home??? Thanks for any replies.

hi myself and my partner is thinking about moving to New Zealand from the UK, shes a Filipino nurse here in the uk for approx 10 years now, so we where thinking about transferring as a skilled migrant, after reading the comments on this site it looks like we are making the wrong decision is things really as bad as this in new zealand??

This is a start worse to come, government is ready to welcome you to take all your hard earned money.

I have just read everyones posts and I am still not clear on these points. Can someone please answer them clearly

1. If I declare bankruptcy in New Zealand, how will it affect me in Australia Can i apply for a home loan in Australia? Can I own a home? Will any agency in New Zealand come after me here for my home or car if it is worth something?

2. If I declare bankrupcy in NZ how long does it last for...how do I actually file for it from Australia Any detailed information would be helpful Does anyone know of a lawyer who deals with these specific issues?

Hi all, I am Aussie and my husband is Kiwi. We lived in NZ for 14 years and have been is Aussie for the last 3 1/2. As I was only 20 when we got together I never had credit prior to moving to NZ. When we moved back to Australia we had no credit rating at all, even though we have both always worked, owned house, car etc. Having no credit rating was a pain in the @ss as we had to pre-pay everything from power to phone to car purchase.

Separatley, we are in a similar situation with the bankrupsy thing in NZ. Our mortgage is killing us and the house just will not sell argh. Now my husband is off work for 3 months and my income needs to stretch somehow to cover expenses here and NZ and I am not confident, I need to get a second job just to afford to be broke right now. He says to just default and let the bank take the house.

It is not that simple, I recall seeing a solicitor when I was made redundant in NZ which is what originally prompted us to move. He said to avoid it at all costs, he said the remaining debt from an auction of our house would be put against us and if we opted for bankrupsy, any earnings, assets, wages could be seized/garnished without our consent for 5 years. Our passports could be frozen so we are not allowed out of NZ etc.

Now we are on this side of the ditch I dont know how that will go as people keep saying the credit history is linked between the two countries but in my experience it has not been. Both of us have a great credit history in NZ (at the moment) but that certainly has not translated in Australia, we had to start out with nothing and unable to get credit, even for a mobile phone service as we had no credit ratings. I am worries about the passpost freezing thing though, especially for my husband as he is Kiwi. It would be terrible if he was to visit NZ then not be allowed back out.

I dont know what to do either except keep my chin up and work my @ss off until we are free of the house over there, which by the way - due to the market downturn is valued about 40K less than we owe!!!

I hate that such a lovely place where I have so many happy memories, got married and raised our girls is having such a negative presence in our daily lives here. I wish everyday to be free of it :-(

Good luck people, I hope it all works out in the end for all of us :-)

I declared Bankruptcy in NZ from Melbourne about 4 years ago. Its a dream come true. (90k of debt reduced to nothing and it does not affect my credit in Australia at all. Have since got a 12k loan no probs over here. NZ and Aust do not talk at all....its bullshit. Basically Australia is not interested in anything outside Australia cause they are selfish bastards. Good for us.I did it! Now I can live again! :)

Now its been over 3 years and if I get a loan in NZ I don't have to declare myself bankrupt. Its best to hide your money or declare with no savings as they base it on what happens when you declare - ie your situation then.

The sooner you declare, the sooner you will be free. I know kiwis whose loans have grown to well over 120k. Declaring is the fiscally responsible thing to do if you cannot service the loan. Otherwise the anxiety will kill you anyway if you just worry about it. Do it!

to 'Kiwi' response # 14: If you have a debt of $40,000 or less in NZ you can apply for a 'non asset procedure' which basically means you can right off the debt without going bankrupt. This can only be done once in a lifetime. I'm sure there are conditions that apply. I so wish you could've had this information before.

Has anyone who owes or declared bankruptcy been back to visit family?

My hubby is bankrupt..we in nz now..i have a new job in aussie but need to go in next two weeks will he be stopped at the border leaving nz..ive heard your supposed to get oa approval but that might take too long..can he just get on plane and go over and then we sort from aus..not planning on travelling back for awhile..

ps i spoke to a bank in aus the other day they said you can buy a house straight away providing u have permanent employment.they dont check nz credit.they happy wit h security of property..im not bankrupt..but dont want to comit to going if hubby cant fly out of country anyone know if passport flagged

Hi, My brother moved to Australia from NZ 2 years ago with his 2 dependants, with good intentions of paying his NZ bills. He did so for the first year, but after trying to start again found it harder and harder to keep up. He was able to purchase his first home but has no equity in it.

He has already asked the bank here if he could get money out of the house to pay off the NZ bills. The bank said no. He is now in a situation where he is considering bankruptcy in NZ, as his dept is under 40k he could apply for NAP No Asset procedure.

But !!! he has what's considered to be an asset in Australia, (the House, tho it has no equity) and he has his Kiwi Saver in NZ which is considered an asset and they would take to pay the debts with if he went bankrupt. It's so hard to know what to do. He also has to go back to NZ a few times a year with work. He would lose his job if they found out. Is his passport monitored? How do they know if you are coming in and out of the country??

Hi, Just wanted to see if anyone knows... is there any legal help here in Oz to help file for NAP in NZ? we are in Australia now, left NZ last year. Hubby has left a credit card debt and a trade store debt that was inccured by someone else. But the someone failed to pay and hubby signed pg for it at the time.

We are just unable to pay that and my hubby is on the edge, very depressed because of the money issues and the fact that the someone used him for personal gain.

Just want to forget the whole thing and go on with living our lives and raising our child. Insolvency website has a lot of info but i dont know how to answer some of the questions, like bank account numbers overseas- will they contact his bank here in OZ?

Cars that you own- we have a car each here, do we need to tell them? Any advice will be very helpful.

I'm young single girl bought my unit in nz had all code compliance etc now council has taken that back as its now a leaky home I can't sell my unit and body corporate have told me I have to pay over 100.000 dollars to fix it up ?

I have been to my bank and they won't lend me anymore money my loan is already 260.000 dollars. The only way out as far as I can see is to declare bankruptcy and go home to Australia .can anyone advise me should I go bankrupt here in nz or do it from Australia??

I don't want to be stuck here I've heard they may stop you from leaving the country ? Its just sucks as I bought in good faith and everything was signed off and now this happens had no idea the block of units had problems and real estate never mentioned anything either ?

My wife and I are living in Melbourne, I have a few credit cards from New Zealand and have had two of them cancelled. The first has been passed onto a collection agency, and I wonder how long before the rest follow suit.

My wife and I have a joint bank account she has a student loan, for which we are struggling to maintain as well.

I have been thinking about declaring bankruptcy what are our best options. Will this affect anything we are trying to achieve in Australia?

Hi Abby

Tell your husband not to worry, these issues are easy to deal with if you know how, it's sad that it really gets people down.... anyway depending on how much debt he has to whether you go for a NAP OR BANKRUPTCY.

NAP is under $40k debt your creditors can't chase you, if they do you just give the insolvency number but creditors know they just do the checks. Dealing with creditors is to be in writing NEVER TALK to creditors, they have a job to do and thats to get as much of the debt back as possible, ie say your credit card debt is $5k a debt collector will buy that debt from your bank for say $3k but they will try get the $5k they can be real pricks about it but hey that's there job, just thought I'd put that in there, so any way, when you can't afford what they want paid you do a repayment plan in writing if this happens you transfer funds via www.orbitremit.com these people also do IRD debt transfers for free there fees are really reasonable better then the banks.

New Zealand debt collectors are Aussie debt collectors mainly the big players, Veda, Dun&Brad just to name a couple. So if you borrow money yeah they do the credit checks and your NZ credit history normally comes up, Australian financial institutions updated their credit check policy to include more access to peoples personal information to many people faulting on there loans, so if you got a mushroom tattooed on your knee cap they know about it....

As far as I know if you apply for NAP and your residing in Australia they cannot touch your assets here to repay the debt in NZ. The debt is in NZ therefore they cannot take your assets from here to pay for your debts there. But what will happen is that the creditors will chase you here in Australia but thats only if you lodge your Aussie contact details with the insolvency. See the debt never occurred in OZ so why give OZ contact info.... it's your NZ contact details.

Bankruptcy I would recommend you ring Insolvency NZ, because they don't have anything on their website that mentions "what if I reside overseas how do I go about bankruptcy".

Okay well I hope that has put a little bit of a glow in that dark tunnel, never let finances get you down but I know it can be overwhelming at times but it just takes a little research and know your way it's easy stuff....

Hi there,

A NZ finance co has been chasing me for a debt that has practically been paid, however, they have been adding interest and it has hit $4700.. Thriving gobshites.. The finance co I originally got the iPod and Xbox from collapsed.. They sold the debt and listed it with Veda here, by law a debt that originated in Nz cannot be listed here, I paid $2000 to debt repair Australia to have it removed.. It was removed 4 weeks later, their response was it was listed in error.. I have recently received a letter from them demanding I pay $4700 which I will pay via a lawyer or bankruptcy.. I paid all my other debts from here but am pissed at this co for doing this. I will also look into bankruptcy as it is hard trying to start over here.. I'm not going to give these dickheads another penny..

I am currently bankrupt in NZ, halway through, and doing ok - lost my biggest client a few days before Christmas in 2009 and tried to salvage things but it only got worse. Biggest lesson? Pull the plug before things mount up.

I have contemplated moving to OZ because bankruptcy follows you for at least 7 years and I would like to have a family home again one day -- and its hard to get ahead here. Other than a home one day, I will never touch credit again because it just makes you somebody else's slave. Don't ruin your marriage, health or family for the sake of debt. Bankruptcy has made our lives a lot easer and we are happier than we have been in a long time.

But I will probably wait until I am out of bankruptcy - as far as I am aware, your NZ debt does not follow you to Australia and does not restrict your travel. Debt is not a criminal offence, but you should apply to the OA to travel. It does not take long, a couple of days.

They are reasonable and fair and have been a pleasure to deal with, making a tough time much easier than I expected.

This is information/advice for any1 with student loan debt in NZ that lives in Australia....

My situation: We live in Oz. I've got a huge Student loan in NZ ($80-90k'ish?).
I am a stay at home mum with no income, my husband is on pretty good money in the mines. We have about $200k equity in our home here and a couple of cars.

I wanted to go home for my brothers wedding in a couple months so finally got in touch with a middle person that specialises in helping overseas debtors deal with their student loans by negotiating with the IRD for a loan reduction/interest write off or if necessary filing bankruptcy on your behalf.

Here is the options as outlined by the consultant who is a qualified accountant/tax specialist:

Dear -------

You have asked for advice on your student loan options. We will outline the main options so that you have this information, and then discuss what appears to be the most realistic for you. We realise that not all of the options may be relevant in your case, however, we believe it may be helpful for you to have this information in any case. It appears that your options are as follows:

Lump sum payment: Repayment of the loan in full, or a smaller amount, via a lump sum. If you have penalties in your student loan account the IRD will usually offer a discount for a lump sum payment. The discount is not normally for the entire amount of the penalties, however, we have been successful in obtaining this for some clients. We usually obtain better offers than people can obtain directly. In some cases the IRD will also offer a discount if the student loan borrower enters into a time payment arrangement (please see below). How much would need to be paid in order to qualify for a discount is something that we would confirm with the IRD if we were to act for you in negotiations. It is essential that the IRD's discount offer is obtained prior to making payment. In some cases borrowing to pay the IRD is a good strategy, however, you would need to be sure that you could afford any remaining ongoing payments plus payments on the borrowings and that it will improve your overall financial position compared to the other alternatives. Risks with borrowing include spreading the financial difficulty to others (for example, if borrowing from family members), or causing financial difficulty in more than one country.

Payment arrangement: A negotiation with the IRD for the repayment of your arrears in full, over a maximum period of four years. In addition, you would need to be able to continue to make your minimum annual payments of $5,000 per annum. Unless you will be in a position to pay your arrears in full and to pay more than your minimum annual payments, there is a risk that your loan may never be repaid, or that if it can be repaid that this will take many years. If you cannot repay your loan in full within a reasonable time frame, there is a risk that any payments made may be wasted.

Hardship application: If your financial situation is difficult (especially if you expect it to improve) or you just need time to consider your options, making a hardship application may be a good idea. If accepted, the IRD may relieve you from all or part of your payments for a period of time. A hardship application can relate to previous years and to the current year. It is possible to keep on making hardship applications in order to eliminate or reduce the requirement for ongoing payments. Being granted hardship does not make the loan problem go away and, in our view, should not be seen as a long term solution.

Interest reductions: The grounds for applying for an interest credit under section 25 of the Student Loan Scheme Act 2011 usually relate to the following: Full time overseas study. Working for a charity for little or no payment. Working for a New Zealand employer overseas. Unexpected delay or unplanned absence overseas. Living in Niue, the Cook Islands, Tokelau or the Ross Dependency. The factors can relate to the borrower or their partner. There do not appear to be grounds for such an application in your case. In some cases it is worthwhile investigating whether the IRD has the correct dates for when you were not a New Zealand resident for student loan purposes. They do make mistakes and such mistakes can lead to people being charged interest when they should not have been, or the reverse. If you wish to pursue bankruptcy such an investigation is usually irrelevant.

Bankruptcy Under New Zealand law a debtor can apply for their own bankruptcy. You do not need to be in New Zealand in order to make the application. Bankruptcy normally lasts for 3 years and it normally remains on a person's New Zealand credit record for 7 years. If you have been bankrupt before, the new bankruptcy will remain on your credit record indefinitely. Bankruptcy is a matter of public record. If you become bankrupt your New Zealand student loan, and any other unsecured debts in New Zealand, will be included. Overseas debts are generally not included. This means that when you are discharged from bankruptcy (usually after 3 years) that you will no longer owe the student loan debt. During the 3 years all assets anywhere that you would otherwise own or acquire will belong to the Official Assignee. There are some exceptions for low value cars (under NZ$5,000 in value) and other personal items.

If the Official Assignee manages to generate any funds from your bankruptcy this will go to pay their expenses and your debts. In considering bankruptcy it is important to be sure that there are no assets (owned by you or jointly) at risk of being taken by the Official Assignee (either at the start of the bankruptcy or during the bankruptcy period). Examples could include assets you own now (including Kiwisaver), assets that you acquire, trust funds, assets that you divested yourself of in the few years prior to bankruptcy or any potential inheritances. The Official Assignee can pursue overseas based assets, however, because the costs of pursuing such assets can be quite large this can mean that overseas bankrupts may be allowed to retain equity or assets that would not be the case if they lived in New Zealand. It is likely to be easier for the Official Assignee to pursue liquid assets like bank funds and shares, than land based equity, however, the greater the amount at stake the greater the Official Assignee's incentive to take action. Bankrupts are usually allowed to retain up to $1,000 in cash. You have advised that you a house in Australia. On the face of it, any equity may be at risk if you became bankrupt, however, there is a possibility that given the difficulties in pursuing property overseas, that the Official Assignee might decide not to take action. This would be their decision to make however. If you wanted to ensure that the property was safe, consideration could be given to transferring it out of your name. It can take 2 – 5 years to place assets out of reach of the Official Assignee.

The money that you earn, that you need to support yourself, is likely not to be taken. When you file for bankruptcy you will be required to provide a budget so that the Official Assignee can assess if you have surplus funds after deducting essential living costs. If you have a surplus, from your own earnings, they will ask you to pay this to them.

If you become bankrupt you will be unable to leave New Zealand during the period of the bankruptcy, without permission. If you remain overseas this won't be an issue. If you do wish to return to New Zealand for a visit during the time of the bankruptcy, it will be important for you to obtain permission to leave again prior to finalising any travel plans. It is likely that permission would be granted, however, this cannot be guaranteed. Please also note that if you do not deal with your student loan debt, there could be a risk of arrest, under the student loan arrest law, if you return to New Zealand.

There are restrictions on being self employed, managing a business, or being a company director during the period of the bankruptcy. You should also consider if there would be any professional or visa implications for you. It is important that you take action of some kind as the IRD is becoming increasingly aggressive in pursuing overseas based debtors.

Unless you expect your financial situation to improve, your most realistic option appears to be bankruptcy. This is a difficult step for you to consider given your equity, however, you need to consider the alternatives. The financial impact could be worse if you did nothing and continued to build up assets and then the IRD came along in a few years and made their own application for you to become bankrupt. If you wish to buy time to consider your situation, or you expect your situation to improve, a hardship application could be a good option. A hardship application does not make the problem go away, but it defers it for a period of time. Bankruptcy would make the loan go away and it would also stop any loan related harassment.

We can assist with negotiating with the IRD or with a bankruptcy application. Our cost to negotiate with the IRD is a flat fee of $500 and this includes assisting with a hardship application, if required. We are unable to guarantee an outcome, however, we get good results for most of our clients. Our cost for a bankruptcy application, including filing the application and dealing with the Official Assignee's queries is $600.

Please advise if you have any questions or if we can assist.

Regards

We just moved from NZ to OZ.

Just like everyone else on the page we're on the same boat. Has anyone filed bankruptcy thrugh the insolvency nz website while living here in OZ?

What are required documents if any? also do you put your OZ address on the application? Will it kill our credit rating here in OZ and will they also take our belongings or car here in Australia as well/

Unfortunately with our intention of paying our debt in NZ we realized we can't afford it anymore -----

We arrived in Oz 2 years ago. I got an Oz drivers licence and ATM card and my wife the same. No issues at all. Keep getting credit card offers for 8k+.

As somebody said above - they are only concerned about Oz.

Personally, I'd say let them pay the fees unless it's NAP.

Address? Been no issue at all but I'd err on the side of caution and use a backpackers mail forwarding service to be sure (Woodduck is good).

Nobody seems to have answered the 'can I go back for visits' issue (Except for the Student loans answer).

Perhaps if it is 'private' rather than Govt. debt you'd be ok.

Read all these posts - some quite reassuring- but BE AFRAID.

I'm a Kiwi bankrupt moved to Oz - mainly because I couldn't get a job in NZ (although all the family is there and its still home). Business troubles, left a large debt - but all to IRD. Made sure I paid off all the staff and contractors. IRD didn't want to do a deal...so job in Oz was my only option - and I was real lucky to find something. Building up from scratch. Its true Aussie banks don't care about NZ - so getting a modest car loan was doable after a few months based on steady job and income. Keeping head above water - just (but wouldn't attempt to buy a house).

Now today, go to buy something at the supermarket and get "declined" on my card. Savings account had $4k. Phoned bank - and quel horreur - NZ Insolvency Trust have put a stop on the account! I now have no funds whatsoever!

I thought NZ and Oz were separate - well NOT SO. NZ Insolvency Trust have canned my ability to live here in OZ - and I am terrified about what happens when the rent auto payment fails in a couple of weeks. Or if I want to eat, or pay to travel to work, or get sick and need to pay the doctor, or...you get it.

I won't sleep tonight - because the Insolvency Trust phone contact I have is 9-5. I didn't think they could do this. One recourse is to try the Aussie Banking Ombudsman - but I'm not sure the reception I'll get - or how long it will take. Another is to ask for my next pay in cash - but that's highly irregular for the large organisation I work for. I just don't know the legal situation - and I have no doubt that simply asking a lawyer will cost me $1000 - that I don't have.

Any ideas out there?

PS If you are in a similar situation - moral is work the 'cash' economy as much as you can. Insolvency Trust appears to have a very long arm.

Hey there all u folks looking for advice. I was bankrupted in NZ while living in Vanuatu, had no effect while there. If you decide to go bankrupt open new accounts before you do, stash cash out side of banks as the OA can seize anything more than $1,000 , dont don't don't pour savings or borrow against equity and dump it into the black hole. You just go broke a lot poorer that way. If your partner doesn't go bankrupt then they cant do anything to her. your house hold stuff is not available to the OA unless it is expensive like a piece of art. Don't volunteer information, sell your car and anything else of value before and stash the cash as they with be after your car if it is valued at 6,000 or more. Basically hide money and liquidate assets and start a life of cash, dont just shift or give or re register in others names as they can and will reverse that and charge you with criminal offenses for doing that. ITS ALL ABOUT THE CASH, best you have it than them.

Hello everyone.

It's sad to read that so many people are in dire circumstances. I found myself in similar circumstances to many just over a couple of years. Ex NZer now living in Aussie. I had small debt in NZ which until recently I was able to comfortably manage. Through a business in Australia which went horribly wrong I found that I had no option but to declare bankrupty in Australia. I included my NZ debt in my declaration but that was not accepted by the NZ creditor as NZ did not recognise my Australian bankruptcy. I was hounded by a very agressive collection agency here in Australia on behalf on the NZ creditor. Whom I might add, had included on the debt excessive fees, penalties and charges. I was not working and my mental state and health were shot. I had no other option but to file bankruptcy in NZ. It has taken me all this time (after a nervous breakdown) to feel that I can start again and turn my life around. Thankfully, unlike others who have been in similar circumstances, I have had the full support of my spouce, both financially and emotionally. I am now looking for work. My trustee here in Australia has outlined what I can earn etc. and as I was previously in a professional field that would prevent me seeking employment as a bankrupt, I know I will be forced to take up an unskilled job so know I will be well under the threshold. My question is: what is acceptable income that I can earn for the NZ OA? My spouce is still working but looking to retire and I would be the sole earner.

Hi Ronald isn't it only valid if you earn money in NZ. You are already binded by the laws in Australia whilst under bankruptcy. Can't see if you couldn't get yourself bankrupted under the one umbrella why you will have to abide by the different laws?

I currently live in Australia and am having great difficulty in finding any work, I did have a job and was doing really well until I had a mishap.. and now haven't been able to find anything in the last 9 months, With my debt in New Zealand its really hard to commit to anything due to not working so what do I do at this stage

I have tried getting the people I owe to hold off, but now its really like I have ran out of time, and the only way out for me is to go bankrupt in NZ, The question I have is how do you do that while living here, If I had the money to go home I'd be there now but sadly I don't, so I am really lost as to how to proceed with the outstandings debts I have and going bankrupt here any advise would be appreciated thanks.

Hi all I have a question I live in NZ and I'm in serious debt. I own about 25k on credit cards and 20k on bank loan to pay a old debt. Is hard to afford it now. I'm thinking to move to Australia and just stop pay my bills in NZ. What could happen?

Hi everyone, I found this site when googling can I enter Australia if I have IRD chasing me in NZ? I live in Asia and have been advised not to return to NZ as IRD can put a stamp on my passport which could detain me there. I am the sole carer for our child and cannot afford to remain in NZ - we cannot afford to live there anymore nor do we want o.

Very sad that so many good Kiwis are forced to flee the Mother Land because it is not sustainable. May have to take the bankruptcy option as don't have enough income to pay back all debt but we ae chipping away at it.

Please advise if you have had a similar experience - re the fear of extradition back to NZ for outstanding fines? Also keen to hear from the lady who found someone to process the bankruptcy for $500.

Thanks Kiwi abroad

You can read more info here

https://movetoaustralia.net/forum/topic/804/declaring-bankrupt-in-new-zealand-while-living-in-australia/

I feel for you all with genuine pain - the others - go away! Honesty is the best policy! The people in Insolvency NZ are actually very customer orientated.

If you live and work in Australia but have debts in both countries that you can't eventually afford you will possibly have to look at separately going bankrupt in both countries (as neither country recognizes Bankruptcy in each other's country).

However, if you chose to ignore a creditor in NZ - here's the rub - they (Aust/NZ) have I believe, an understanding/mutual agreement should a debt be "proved" in NZ and they then have reciprocal rights to uphold that in Australia. That is what I was told but they could have been bluffing - who knows! Anyway in my case I had already declared bankruptcy here in Australia. Even though I had declared my NZ (Bankcard) debt in my Australian Bankruptcy they (NZ) still came after me so I had no option but to declare the same in NZ.

Bankruptcy for NZ can be done online - but I urge anyone thinking of going down this path - be TOTALLY honest ABOUT everything!

I have just read past posts and it appalls me that some people are saying that "we can't pay back what we owe - nor do we want to"! Shame on you!

Bankruptcy should only be for those people who genuinely have got themselves into serious financial trouble and (if they could) would pay back the money owed to creditors.

Those people who just "rack up" debt and walk away should not be given the second chance of bankruptcy (which that is - a second chance to get on with life).

I get very angry with bludgers that think they can go out and spend money (they know they don't have) and then cry "poor me" when the bills roll in and they can't pay!

The system is in place for genuine people, put into very bad circumstances - not bludgers looking to rip off the system. Go away - don't even attempt to come to such a forum of people that genuinely need help.

Hi all, I too have been in oz for ten years and have a ird dept, I have tried to make manual payment when I could but have been in and out of casual jobs so have not been able to keep it up or reach the minimum payments, so am thinking it might be best to declare bankruptcy my concern is that we have a home and mortgage here in oz and In nz both with little equaty the dept is mine not my partners will we loose both our houses if I go bankrupt and who and where is the best place for me to ask for help.

What about a no asset procedure instead of bankruptcy? Can they take your house in Aus?

I owed NZ IRD over $80K and other business creditors about $100K due to business failure. I'm in OZ now and IRD had obtained judgment to declare me bankrupt in 25 days time! I find a job in Melbourne with $60K salary. Will NZ OA fetch his hand to my salary here? Do I need to declare my paid job as I understand that I may need to fill in a statement of financial position with the OA? Did anyone totally ignore the NZ OA request at all while you are at OZ?

Yeah the same as others , left NZ 17yrs ago with $25 k student loan which became $85 K! IRD would not be reasonable in discussions. So no choice but to go down insolvency track, we be worth the money to get it sorted out and think is a 3yr program rather than 7 yrs as in the past. Love NZ just unable to make it work.

Hi guys. Any help to answer my inquiries please.. Im living here in Australia for about 2years and i have credit card in ANZ bank New Zealand worth $16k and I didn't pay for that. Is there any possibility that ANZ bank NZ will assign a debt collector in Aussie to chase me and force me to pay my ANZ credit card in NZ? Im thinking they might have connections in Aussie. I'm really broke and my job is on and off.

In the future, will I be able to get an approved loan or any credit card application once I apply in Aussie, or will my application be declined because I didn't pay my credit card in NZ?

Hi there, I'm a newly single mother of 5. Moved to Australia a year ago, when I left NZ I was in big Debt, (student loans, personal loans everything) upto 80k I reckon.

Come to Australia to start fresh and encountered in some loans to start me off over here now I cant pay them. I am just wondering if I go into bankruptcy would I be able to apply for a home loan within a couple of years? Or would it be easier to apply for new name change and hope to not get caught out when asked (are you known as any other given names)

Help please I want to start fresh and want to look forward to the future and buy a house for my children. But dont see any other way.

this is just disgusting pay ya debts off your the one that took on the debt in the first place total losers what a cop out as u are on a high income in oz pay ya bloody bills tosser dont be a Bum