Legal Project Management Plan & Checklist
Purpose of this Guide: Use this plan when representing a New Zealand debtor facing unmanageable debt who needs to formally enter personal bankruptcy. It guides the practitioner through assessing financial position, determining eligibility for bankruptcy versus alternative procedures, preparing the Form 4 Statement of Affairs, and managing the three-year adjudication timeline.
Jurisdiction: New Zealand High Court and the Insolvency and Trustee Service (ITS) under the Official Assignee.
The Process at a Glance: The practitioner must first compile a complete inventory of the debtor's liabilities, assets, and income. The system calculates whether the debtor qualifies for the No Asset Procedure (NAP) or must proceed to bankruptcy. If bankruptcy is required, the practitioner prepares the electronic Statement of Affairs and lodges it via the ITS portal. Once adjudicated, the plan tracks the 3-year statutory discharge period, assesses ongoing income contributions, and manages any Official Assignee objections or cross-border enforcement issues.
Use this plan when representing a New Zealand debtor whose unsecured debt is $50,000 or less, who possesses surplus income to make sustainable repayments, and who wishes to avoid bankruptcy to retain ownership and control of their assets. A Debt Repayment Order (DRO) consolidates debts into a supervised payment plan.
Use this plan when representing a New Zealand debtor whose debts typically exceed $50,000, who has complex financial affairs or realisable assets, and who wishes to negotiate a formal compromise with creditors to avoid bankruptcy. A Part 5 Proposal allows the debtor to propose a binding settlement.
Use this plan when representing a New Zealand debtor whose total assessable debt is between $1,000 and $50,000, who has no realisable assets, and who has no surplus income to make repayments. The No Asset Procedure (NAP) is a one-off, low-intervention alternative to full bankruptcy that discharges the debtor after exactly 12 months.
Key Legislation and Case Law: The process is governed by the Insolvency Act 2006, the Insolvency (Personal Insolvency) Regulations 2007, and Part 24 of the High Court Rules. Key thresholds include Section 158 (retention of exempt assets like tools of trade, $6,500 motor vehicle, $1,300 cash), Section 147 (income contributions based on Statistics NZ data), and Section 290 (automatic discharge after 3 years).
* Disclaimer: We're nobody's lawyer, because we aren't lawyers. You are, so you know better than to take legal advice from an app. We also aren't accountants or dog trainers - just digital spirit guides taking zero liability for any of this. This site exists to gather the collective knowledge of practitioners like you. Verify everything and submit your feedback on the Personal Insolvency (Debtor) matter plan to improve the playbook. THIS IS NOT LEGAL ADVICE, it's a request for input.
This legal matter plan provides a structured workflow for Bankruptcy & Insolvency cases, outlining the standard Insolvency Administration process. Utilize these tracking templates to manage your legal cases efficiently.
Verify all prerequisite documentation has been obtained, cross-reference against the statutory requirements for this matter type, and confirm compliance with practice direction protocols.
Statutory Context: Excluded debts are defined under s 104 Insolvency Act 2006. These include student loans, child support under the Child Support Act 1991, maintenance orders, and court-ordered fines/reparations. These debts are NOT discharged by bankruptcy.
Joint debtors: Bankruptcy does not release co-debtors or guarantors from their joint obligations.
Prepare the relevant forms and supporting materials required under the applicable legislation, ensuring all mandatory fields are completed and all attachments are properly certified.
Statutory Retention Rule: Under s 158 Insolvency Act 2006, any motor vehicle surplus value over $6,500 or cash over $1,300 vests in the Official Assignee. Real estate vests immediately, and joint tenancies are automatically severed.
Draft and dispatch formal correspondence addressing the procedural requirements at this stage, including any required notices, requests for information, or proposals for resolution.
Surplus Calculation: The system uses the formula: `S_surplus = I_household - E_reasonable`. If `S_surplus > 0`, the debtor may be required to make income contributions to the estate under s 147 Insolvency Act 2006, or they may be ineligible for the NAP pathway and required to consider a Debt Repayment Order.
Coordinate the collection and review of all financial documentation required for disclosure, including statements, valuations, and supporting schedules as mandated by the rules.
Calculation of Assessable Debt: The debt threshold for NAP is $50,000 (raised from $47,000). The formula is: `D_assessable = D_total - (Student Loans + Child Support + Fines + Maintenance)` If `D_assessable` > $50,000, bankruptcy or a Part 5 Proposal are the only options.
Conduct a thorough review of all filed materials to ensure compliance with court requirements, verify service obligations have been met, and prepare for the next procedural milestone.
Statutory Duty of Disclosure: The debtor has a strict duty under the Act to provide a complete and accurate Statement of Affairs. Concealing assets is an offence under the Act, punishable by imprisonment.
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