Declaring bankruptcy is a lot more serious than most people give it credit. It should never be perceived as a quick and easy way to wipe out all debts.
It affects you in every way possible! Think of not having a house or being able to rent one! No creditcard (rightfully so), no insurance, most bank accounts are restricted, its a horrible thought.
and then there's the whole "ill just go to aussie" part. NZ has an extradition treaty with AU does it not? (*thinks) so the person in question will just be bought back and then to make matters worse will be prosecuted! Then you got a criminal record too! and that'll stick for 7 years or so.
Not to mention not being able to work at many places - think of all those applications that ask if you have ever been bankrupt!
plus she would be liable for any and all debts she incurred from the date of declaring bankruptcy. oh that and all her possessions can be seized. so no cell phone - nothing.
I hope this helps in a way - your friend should sit down with a financial adviser and have a long, hard think about what she is contemplating about.
Hope this helps.