How insolvency affects you

Your credit rating

Any insolvency procedure affects your credit rating. This can make it difficult to:

• find a bank or other money lender who'll give you credit to buy things like a car or house
• find landlords who are willing to rent to you.

The length of time that credit reporting agencies keep records of your insolvency on your credit file depends on the specific insolvency procedure you go through. It’s important to note that for No Asset Procedures (NAPs) and bankruptcies, the information is generally kept for a further 4 years after you’re discharged from the procedure.

Credit reporting agencies may hold details of a Debt Repayment Order (DRO) on your credit file for up to 5 years, which could be longer than your procedure lasts.

Your money, banking and other services

• You must inform the Assignee about your income and expenses including any funds you obtain of over $1,300 (other than wages or holiday pay) during your insolvency.
• Depending on their policy, your bank can choose to close your accounts (including any business accounts). If they do, you might find that smaller banks like credit unions or building societies are more willing to let you open new accounts. Your bank may also limit the banking services you can use, for example you may not be able to have a debit or credit card for your account. 
• Providers of services like power, gas, phone and insurance may choose to stop providing services to you, or they might put restrictions on what services they'll provide to you.

Your employment

Employers might think your insolvency is a risk to their business and may not want to employ you.

Your privacy

If you enter into bankruptcy or a NAP, a record of your entry will be listed in the insolvency register on this website — this is free for the public to search. These details from your file can be seen during your procedure and for four years after you are discharged:

• your estate (reference) number
• your full name and any other name you may use
• your month and year of birth
• your address when you became bankrupt/NAP
• any change of address during your bankruptcy/NAP
• the date you became bankrupt/NAP
• your occupation and employment status.

A link to the register is also contained in the New Zealand Gazette, which is a permanent online record of official notices.

If you enter into multiple insolvencies, the above details will remain on the insolvency register indefinitely.

If you enter into a Debt Repayment Order (DRO), it will be listed on the DRO register on this website – this is free for the public to search. These details from your file can be seen while you’re in the DRO:

• your estate (reference) number
• your full name and any other name you may use
• your month and year of birth
• your address when you entered the DRO
• any change of address during your DRO
• your occupation
• the date you entered the DRO
• the name and contact details of your DRO Supervisor.

Credit information agencies will also add this information to your credit file, and may keep it for longer than your insolvency procedure lasts.

For more information about privacy issues, visit the Privacy Commissioner website:

Privacy Commissioner(external link)

View our Privacy policy

If you have a protection order from the Court you can apply to have your address suppressed so that it does not show on the public register. Please contact your insolvency officer.

Your KiwiSaver and retirement savings

Your retirement savings, including KiwiSaver, are an asset. However in the case of a KiwiSaver scheme, the funds are protected from your creditors while they remain in the fund. Other superannuation schemes are variable depending on their trust deeds. If you could access any of these funds during your insolvency the Official Assignee may not accept you into a NAP or DRO, or may take the funds if you are bankrupt.

If, during Bankruptcy, you need to withdraw funds from your Kiwisaver scheme for anything other than hardship or serious illness, please ensure that you first obtain the agreement of the Official Assignee. If you are withdrawing funds from your Kiwisaver because of serious hardship, the decision to release funds is that of your Kiwisaver provider and the scheme supervisor. You do not have to contact the Official Assignee in this circumstance.

If you sign up to a superannuation scheme, including a KiwiSaver scheme, while you're in an insolvency procedure and make payments into that scheme, your DRO or NAP may be terminated as that money could be used to repay your creditors.

Your partner

• If you have joint services like bank or power accounts, your bank or service provider may decide to close the account once they become aware of your insolvency procedure.
• If you have joint debts, the creditor may ask your partner to pay the full amount of the debt if they've signed a guarantee, or have agreed to be jointly liable for the debt.

Your partner might also be affected if you have joint assets and you become bankrupt — the Official Assignee may either try to sell your share of the assets to them, or all the assets may have to be sold. Your partner would be given their share of the money from the sale and the rest would be used to repay your debts.

Joint debts

If you have a joint debt, each person is responsible for repaying all the debt. If one person becomes bankrupt or in a NAP, the creditor can make the other person pay the whole amount.

If you are not sure if your debt is joint, you should get advice.

Student loans 

If you enter into a NAP or DRO your student loan balance is not included in the procedure, and you will still have to make payments towards it. You can apply for a new student loan, but you must inform Studylink that you are in a NAP when you are applying.

If you are adjudicated bankrupt, your student loan balance will be included in the procedure, and you will no longer have to make payments towards it. You will not be able to apply for a new student loan until your bankruptcy is discharged or annulled.