What are my options?

Video transcript: I owe money I can’t repay

[Audio: Soft music in the background.]

[Visual: Background is 3 geometric triangular shapes in teal, turquoise and coral colours. New Zealand Insolvency and Trustee Service branding in white in the middle of the page.]

[Visual: Caption appears saying 'I owe money I can’t repay – who can help me?']

[Audio: Soft music in the background.]

[Visual: Screen switches to the presenter sitting at a table. In the bottom right corner of the frame, a New Zealand sign language interpreter translates throughout the video.]

[Visual: Turquoise box appears in lower left-hand corner of the screen with white writing reading ‘If you’re having trouble managing debts, there are options to help get you back on track’.]

[Audio: Presenter speaks.]

Presenter: We know that managing your finances and making repayments isn’t easy, and sometimes it just isn’t enough to get on top of your debt. If you’re having trouble managing debts, there are options to help get you back on track.

[Visual: Screen switch to Felicity sitting at the other side of the table.]

[Audio: Felicity speaks.]

Felicity: That’s right. High interest loans, penalties and even life changes can make it really hard to keep on top of debt and owing money can cause a lot of stress for you, your whānau and your community. But I heard that insolvency could help?

[Visual: Screen switches to presenter.]

[Audio: Presenter speaks.]

Presenter: Absolutely – there are options that can stop your debt from growing so you can get back on your feet. Just remember, insolvency options do have long-term effects so we’ve got a few things you could try before going down that path. Let’s run through them.
Presenter

[Visual: Turquoise box appears in the lower left-hand corner of the screen with white writing reading ‘Talk to your creditors’.]

Presenter: I’d start by reaching out to my creditor and let them know that I’m having a hard time making repayments just in case they can do something to help. You never know, they might have some payment options that could make things a bit more manageable.

[Visual: Turquoise box moves off screen to the left.]

[Visual: Screen switches to Felicity.]

[Audio: Felicity speaks.]

Felicity: That’s a good idea. What about if something unexpected happened that made it harder to pay my debt?

[Visual: Screen switches to Presenter.]

[Visual: Turquoise box appears in the lower left-hand corner of the screen with white writing reading ‘You might qualify for hardship assistance’.]

[Audio: Presenter speaks.]

Presenter: That’s when I’d check to see if I qualified for hardship assistance. A repayment holiday or reduced payments with a longer time to pay could make a big difference.

[Visual: Turquoise box moves off screen to the left.]

[Visual: Screen switches to Felicity.]

[Audio: Felicity speaks.]

Felicity: Oh yeah? What would you do to find out if that’s an option?

[Visual: Screen switches to the presenter.]

[Audio: Presenter speaks.]

Presenter: I’d need to talk to the people I owe money to, and they’d point me in the right direction.

[Visual: Turquoise box appears in the lower left-hand corner of the screen with white writing reading ‘Talk to a financial mentor MoneyTalks 0800 345 123’.]

Presenter: But, before I did any of that, I’d chat to a free financial mentor. They’d take a look at my options with me and create a budget that works for me. Plus, they can actually speak to creditors, debt collectors, and others for me. All you need to do is call MoneyTalks on 0800 345 123 to find a free financial mentor.

[Visual: Turquoise box moves off screen to the left.]

[Visual: Screen switches to Felicity.]

[Audio: Felicity speaks.]

Felicity: What if it turns out that I can’t repay my debts?

[Visual: Screen switches to the presenter.]

[Audio: Presenter speaks.]

Presenter: That’s when you might need to look at an insolvency option. If you owe more than $50,000 in unsecured debt, then bankruptcy is your only insolvency option.

[Visual: Graphic with a grey background, the Your Insolvency Options diagram appears on screen. This is a flow chart representation to the right, with an elongated circle shape in teal, with white writing reading ‘I owe more than $50,000’. The branch from this is Bankruptcy shown in a coral circle with white writing.]

Presenter: If you owe less than $50,000 in unsecured debt, the options depend on whether you can repay some or none of your debts.

[Visual: Graphic appears with a grey background, the Your Insolvency Options diagram appears on screen. This is a flow chart representation to the left, with an elongated circle shape in teal, with white writing reading ‘I owe less than $50,000’. A branch to the left shows a smaller elongated circle in turquoise. White writing reads ‘I can repay some’. The branch from this is Debt Repayment Order shown in a coral circle with white writing.]

Presenter: If you’re able to make repayments towards your debts, your best option might be to apply for a Debt Repayment Order (also called a ’DRO’).

[Visual: Screen switches back to Presenter who speaks.]

Presenter: This means a supervisor is assigned to work with you to figure out how much you can afford to repay and the weekly repayment amount. Once the DRO is approved, you continue to make repayments over a set period of time, which is usually about 3 years.

[Visual: Graphic with a grey background, the Your Insolvency Options diagram appears on screen. This is a flow chart representation also starting from the ‘I owe less than $50,000’ elongated circle. The branch veers to the centre right of the flow chart with a turquoise elongated circle with white writing reading I can’t repay any’. The branch from this is No Asset Procedure shown in a coral circle with white writing.]

Presenter: If you can’t repay any of your debts and your total debt is under $50,000 (both unsecured and secured), your best option could be a No Asset Procedure, a NAP. This means your debts would be wiped after 12 months, and you wouldn’t have to worry about them anymore.

[Visual: Screen switches to the presenter.]

[Audio: Felicity speaks.]

Felicity: Is this all on a website somewhere?

[Visual: Screen switches back to Presenter.]

[Audio: Presenter speaks.]

Presenter: It is! Head to the insolvency website insolvency.govt.nz

[Visual: Turquoise box appears in the lower left-hand corner. White writing reads insolvency.govt.nz.]

Presenter: On there, you can find out more and apply for an insolvency option.

[Visual: The turquoise box moves off screen to the left.]

Presenter: Don’t forget that going down the path of insolvency does have consequences that could seriously impact your future. I’d definitely get some independent advice first.

[Visual: Scene switches to the presenter standing.]

[Visual: Turquoise box appears at the top right-hand corner of the screen. White writing reads ‘MoneyTalks – 0500 345 123’.]

Presenter: MoneyTalks is a free helpline offering budgeting advice to individuals, family and whānau. They can put you in touch with financial mentors who can help you understand your financial situation, organise your debt and plan for the future. 

[Audio: Soft music plays in the background.]

[Visual: Teal and white New Zealand Insolvency and Trustee Service branding and Digital Boost Branding show in top corners of the screen.]

[Visual:  Appearing slowly white writing reads ‘Want to know more? Insolvency.govt’.]

[Visual: Teal background with the Ministry of Business, Innovation and Employment and New Zealand Government brandings in white.]

[End of video]