Applying for bankruptcy (debtor's application)

If you owe more than $1,000, you can apply for bankruptcy. This is called a debtor’s application. 

When you may need to apply for bankruptcy

Bankruptcy may be your only option if:

  • you owe more than $50,000 in unsecured debt that you cannot repay. Unsecured debt is debt that isn’t linked to a specific asset
  • you have been bankrupt in the past or completed a No Asset Procedure.

If you owe less than $50,000 you should consider a No Asset Procedure (NAP) or Debt Repayment Order (DRO) first.

Other insolvency options

If you have been made bankrupt by the court this is called a ‘creditor’s application’. Creditors' applications follow a different process.

Made bankrupt by the court (creditor’s application)

How to apply for bankruptcy

  1. Check eligibility and alternatives

    Check that you owe more than $1,000 in debt and that bankruptcy is the best option for you.

    Compare your options

  2. Create a RealMe® account or sign in

    To apply online you need a RealMe® account. It is free to make an account.

    How to create an account

The timeline of a bankruptcy

This timeline describes how the bankruptcy process works if you apply for bankruptcy yourself.

  1. Apply online

    Your first step will be applying on our website.

  2. Wait for the decision by ‘Official Assignee’

    You can expect a response about your application within 10 working days. The Official Assignee may ask for more information from you before your application is approved.

  3. Your bankruptcy is listed

    You will be contacted with the result of your application. If your bankruptcy is approved, it will be published in the New Zealand Gazette. It will also be listed on the public insolvency register and will stay there for the 3 years of your bankruptcy, and for 4 more years after your bankruptcy ends. 

    Bankruptcy notices(external link) — New Zealand Gazette

    Insolvency register

  4. Creditors are contacted

    All unsecured creditors that you noted in your application will be sent a report. They can log on to our website to get updates.

    You should contact your secured creditors and either:

    • keep making payments under the agreement, or
    • arrange for the secured item to be returned/repossessed. You can then stop making any payments under the agreement. They can then claim against you for any unpaid amount as an unsecured creditor.

    Dealing with creditors

  5. During bankruptcy you are restricted

    Bankruptcy will impact your life and restrict what you are able to do.

    How bankruptcy affects you

  6. Follow your bankruptcy on your dashboard

    Check the progress on your online dashboard if you make any repayments or have assets to add or update. 

    Managing your bankruptcy

  7. Your bankruptcy ends

    Your bankruptcy will usually end (that is, you will be ‘discharged’) after 3 years. Your bankruptcy status in the Insolvency Register will automatically change from 'Current' to 'Discharged’ and your details will display there for 4 years after your bankruptcy ends.

    More about ending bankruptcy

Other formal ways to deal with your debt

Debt Repayment Order (DRO)

A DRO may be your best option if:

  • you owe less than $50,000 in unsecured debt, and
  • you can make some repayments on your debts.

Debt Repayment Order

No Asset Procedures

A No Asset Procedure (NAP) may be your best option if:

  • you owe less than $50,000, and
  • you have no assets or extra money to make repayments on your debt.

No Asset Procedures

Compare your options using our comparison table