tinytawnykitten Posted September 16, 2008 Report Share Posted September 16, 2008 My friend is in financial poo, and one of her creditors is threatening bankruptcy. She reckons she is going to move to Australia and become bankrupt from there but that she won't be bankrupt in Australia. I think she thinks everything is going to be fine and dandy. She doesn't have any assets or anything so not much to lose. Surely though it is not that simple? She is a really close friend and I really care about her and don't want her to make a huge mistake. Surely it isn't that simple? Quote Link to comment Share on other sites More sharing options...
David R Posted September 16, 2008 Report Share Posted September 16, 2008 There's all sorts of restrictions on what you can do in the years following declaring yourself bankrupt. Tell her to thoroughly look thru the IRD website (or who ever it is) and talk to an accountant about it. And maybe a lawyer. Quote Link to comment Share on other sites More sharing options...
ryanjury Posted September 16, 2008 Report Share Posted September 16, 2008 Pretty sure this site (or if you give one of the phone numbers a call and ask them) should help.. http://www.insolvency.govt.nz/ Quote Link to comment Share on other sites More sharing options...
tinytawnykitten Posted September 16, 2008 Author Report Share Posted September 16, 2008 Yeah I was having a look at that. I have already suggested that website to her. I don't really feel that I can say any more to her about it. Quote Link to comment Share on other sites More sharing options...
lmsmith Posted September 16, 2008 Report Share Posted September 16, 2008 They've recently changed the rules on bankruptcy; it's basically off your record in 2 (or 4??) years. During that period you can't run your own business, and there's a few other things. Some jobs (eg, some government jobs) will not employ people who have been declared bankrupt, and it makes it hard to get loans, like hire purchase, car loans, and, depending of the situation, also bank loans for home purchase. When you are released from bankruptcy, your debt is wiped (except fines and court ordered payments). However, it still has implications for future loan ability. When you are declared bankrupt, you have to forfit all your assets, except up to $1000 cash, and a vehicle up to (I think) $5,000. Any assets you may incur while being bankrupt are subject to approval from your case manager. You are not allowed to leave NZ for any reason without permission from your case manager, so I suspect it will not be as easy as she things to get out of the situation. In saying that, bankruptcy can be beneficial in some situations, but is a reasonably paper-heavy thing to declare (to prevent everyone from doing it, I guess). I suggest she get quality advice from lawyer (she'll probably need one anyway during the process). Community Law offices would be able to offer her a lot more information, as well as IRD. Please don't rely on any of this information being correct, as I haven't dealt with bankruptcy law in a while, and the law has recently changed. Quote Link to comment Share on other sites More sharing options...
sandysme Posted September 16, 2008 Report Share Posted September 16, 2008 tell her to look at a court summary instalment order... Quote Link to comment Share on other sites More sharing options...
Stella Posted September 16, 2008 Report Share Posted September 16, 2008 I don't know anything about bankruptcy, so I can't help you there. But do you think your friend will actually learn from this and not wind up in the same mess again? Maybe she will need some ongoing help with financial management. Quote Link to comment Share on other sites More sharing options...
tinytawnykitten Posted September 16, 2008 Author Report Share Posted September 16, 2008 She won't go and see a financial planner as far as I can tell. And I don't know whether she will learn from this. From what I know, things have been very bad financially for about 8 months and she has a 'throw caution to the wind' approach about it now, seems to be gaily spending wherever possible before 'all her debt is taken care of by insolvency. Quote Link to comment Share on other sites More sharing options...
Barrie Posted September 16, 2008 Report Share Posted September 16, 2008 pity is that they are doing to others exactly what others have done to her. If anything it makes her worst. Everyone has problems from time to time and its the way you cope and solve them that makes us who we are... proud and honorable or just another sleaze ball. I admire the guts of Suzanne Paul Quote Link to comment Share on other sites More sharing options...
Julie Posted September 16, 2008 Report Share Posted September 16, 2008 Suzanne Paul is an example many people should look up to. Quote Link to comment Share on other sites More sharing options...
Stella Posted September 16, 2008 Report Share Posted September 16, 2008 seems to be gaily spending wherever possible before 'all her debt is taken care of by insolvency. Kindly remind her that this is stealing :roll: I understand that people screw up now and then, sometimes things go mad and we can't keep up and get in a mess. Refusing to learn from it and actively making the problem bigger is just stupid. Quote Link to comment Share on other sites More sharing options...
tinytawnykitten Posted September 16, 2008 Author Report Share Posted September 16, 2008 Suzanne Paul is an example many people should look up to. I'll say, that woman doesn't quit. She's a star. Quote Link to comment Share on other sites More sharing options...
alanmin4304 Posted September 16, 2008 Report Share Posted September 16, 2008 What gets me is that these people usually take others with them. Quote Link to comment Share on other sites More sharing options...
Barrie Posted September 16, 2008 Report Share Posted September 16, 2008 exactly Alan and had they paid even half back, it may well have save others Quote Link to comment Share on other sites More sharing options...
whetu Posted September 17, 2008 Report Share Posted September 17, 2008 Obviously I don't know the specifics of ttk's friend, but I get really upset when people declare bankruptcy as the 'easy way out.' I'm sure we would all love to spend someone else's money and not have to pay it back, but most of us have higher standards than that. Tiny, I think you should have a stern word with your friend about what she is doing and its consequences for herself and others. Also do tell her that there are other ways out with the help of budgeting services etc. I know sometimes a situation can seem desperate and it's so far out of our control that we just want to give up trying, but if your friend can see how she can regain some of that control it might help her. Quote Link to comment Share on other sites More sharing options...
whetu Posted September 17, 2008 Report Share Posted September 17, 2008 Afterthought: The creditor who is threatening to bankrupt her is probably pretty desperate too. The consequences for him/her would be pretty unfavourable if your friend has no assets. Effectively the creditor would be writing off the debt. I wonder if they are just using this as a threat to try to scare her into beginning repayments. Sounds like your friend is getting herself into deeper and deeper trouble as long as she has this threat hanging over her. Whatever she does, she needs to take some action and not just carry on as she is doing. Quote Link to comment Share on other sites More sharing options...
Barrie Posted September 17, 2008 Report Share Posted September 17, 2008 Whetu Things like claiming GST back cant be done untill there is no hope of collecting the dept so there for if the creditor is wanting something back, its best he put "thing" into action as soon as possible. If they do a runner and go to Oz, it would mean they could never come back as they would/may be stopped from leaving again and may be called to answer many charges (or thats the way I understand it to be with a guy that did a runner on my company). This may well create problems in the future if their parents.brothers or sisters were to pass away and they may not be even able to come home for a funeral? Quote Link to comment Share on other sites More sharing options...
alanmin4304 Posted October 10, 2008 Report Share Posted October 10, 2008 I have someone who owed me a few grand. I established the debt at the small claims and have been back to court about a dozen times with orders of examination and attatchment orders. She has had arrest warrents issued half a dozen times. At the last hearing it was established that her fortnightly income after expenses and payment of other debts was over minus $47/fortnight. Somehow she decided to pay me $50/fortnight until she regained full emplyment, then $100, and to my surprise I got the first payment this week and it was $100. Long may it last. I have been chasing this lady for many years and will be for many more. You have to hound these people or they just go and do it to someone else and never take responsibility for their own lives. Quote Link to comment Share on other sites More sharing options...
phoenix44 Posted October 10, 2008 Report Share Posted October 10, 2008 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. Quote Link to comment Share on other sites More sharing options...
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