If owed by DRO debtor

The claim process

If you are owed money by a person who has entered a Debt Repayment Order (DRO), you can’t chase them directly to repay the debt. You can file a claim for what you are owed and share in any payment from the estate.  

Will I get regular updates?

DRO Supervisors will:

  • send notices to all known creditors
  • check and approve claims
  • report to creditors
  • distribute payments.

If the person who owes you money is listed on the DRO register and you have not received any notices, contact the Supervisor as soon as possible. You will need to make sure that the Supervisor knows you are owed money.

After the first notice is sent, you can log in to the Insolvency and Trustee website to see current information including what payments have been made and how much has been paid to creditors.

If you are not listed as a creditor, or became a creditor after the order was made, then you can choose whether to be included in the DRO. The terms of the order (and any variations) will apply to you if you decide to be included.

If you decide not to be included you will not be able to take any proceedings in the District Court against the debtor whilst the order is in place. However, your debt will not be discharged so you can continue to pursue the money owed to you after the DRO is complete.

Will I get my money back, and if so, when?

You should receive dividends (payments) every six months if the debtor makes the payments as per the DRO, over a three year period. The amount you will be repaid will depend on the terms of the DRO. This means you may not get all of your money back.

If the debtor doesn’t make the repayments, the DRO can be terminated. You can then chase the person directly for any money still owed to you.

Objections process

If you are listed as a creditor by a person who has applied for a Debt Repayment Order, the Supervisor of the DRO will contact you.

If you want to object to the order being made, complete an objection form and send it to the Official Assignee within 10 working days. You can only object if you have information which might change the amount being repaid.

What if my claim is rejected?

A Debt Repayment Order (DRO) Supervisor administers the DRO. This includes checking and approving claims. You will need to file a claim with the Supervisor and provide evidence for it. Otherwise your claim may be rejected or accepted for a smaller amount.

If your claim is rejected, or you can’t come to an agreement with the Supervisor over your claim, you can lodge an appeal to the Official Assignee. This should be done in writing to the Official Assignee within 15 working days of notification of rejection.

The Official Assignee will notify the debtor and Supervisor, and invite you all to make comments within 15 working days. The Official Assignee will then make a decision and notify you of the result.

You can lodge an appeal with the Official Assignee by post to:

Official Assignee
Private Bag 4714
Christchurch

or by email to:

sio@insolvency.govt.nz