No Asset Procedure vs Bankruptcy

This guide helps you understand which New Zealand insolvency option is likely to fit your situation, comparing the No Asset Procedure, a Debt Repayment Order and bankruptcy. When debts become unmanageable, the law provides several formal pathways out, each with its own eligibility rules and consequences, and knowing roughly where you sit is a useful first step before getting proper advice. The No Asset Procedure, or NAP, is the gentlest option, designed for people with debts between 1,000 and 50,000 dollars who have no realisable assets and no realistic way to repay; it clears most debts after about twelve months and can only be used once. A Debt Repayment Order suits people who can pay something over time, letting you repay an agreed amount while protected from creditors. Bankruptcy is the broadest and most serious, generally for larger debts above 50,000 dollars or where the other options do not fit, lasting three years with wider effects on assets, overseas travel and certain jobs. You enter your total unsecured debt, the value of any assets you could sell, and whether you have used a NAP or been bankrupt before, and the tool points to the pathway most likely to apply, with the key facts. This is general information only, not legal or financial advice.