What is the No Asset Procedure (NAP)?

What you need to know

A debtor who is unable to pay their debts may have an alternative to bankruptcy through the No Asset Procedure (NAP).  Unlike bankruptcy, the NAP lasts one (1) year.  Creditors cannot pursue you for debts included in the NAP.

Applying for the No Asset Procedure

Applications are made to the Official Assignee, either electronically or manually.  An application and Statement of Affairs must be completed to a standard acceptable to the Official Assignee.

To qualify for entry you must:

• have no realisable assets (realisable assets exclude cash up to $NZ1,000, a motor vehicle up to $NZ5,000, tools of trade, and personal and household effects)
• not previously been admitted to the no asset procedure
• not previously been adjudicated bankrupt
• have total debts (excluding student loan) not less than $NZ1,000 and not more than $NZ40,000. (Please note that your debt level when applying for entry to the No Asset Procedure will be calculated including all unsecured and secured debt)
  
• complete a means test showing you have no means of repaying any amount towards your debts.

The Official Assignee can refuse entry into the NAP if:

• your creditor(s) object to entry or
• bankruptcy proceedings have been initiated and the likely outcome for the creditor would be materially better if the proceeding continued or
• you have concealed assets or
• you have committed an act that would be an offence under the Insolvency Act 2006 were you bankrupt or
• you have incurred debts knowing you had no means to pay them.

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Further information