Made bankrupt by the court (creditor's application)

If you owe someone $1,000 or more, they can apply to the court to make you bankrupt. This is called a creditor’s application.

What to do if you’ve been made bankrupt by the court

If the court decides that you should become bankrupt, the Official Assignee will send you a letter called a ‘Notice to Bankrupt’ with an activation code. 

If you have received a ‘Notice to Bankrupt’ letter you must do the following:

  1. Sign and return the acknowledgement page of the letter to confirm that you have received the ‘Notice to Bankrupt’.
  2. Go to this page: Activate user account(external link)
  3. Enter your Activation Code and email address, then tick the check box and select 'Activate'.
  4. Enter an existing RealMe® account or create a new one following the online prompts.
    Help with RealMe®
  5. The option to ‘File Statement of Affairs’ will show on your Dashboard.
  6. Complete the ‘Statement of Affairs’ form by entering your financial situation, including assets, debts, income, and expense.

If you have been made bankrupt by the court, you will stay bankrupt for 3 years from the date that we receive your ‘Statement of Affairs’. You must complete your Statement of Affairs to have your bankruptcy end.

More information about the Statement of Affairs

The timeline of a court-ordered bankruptcy

This timeline describes how the bankruptcy process works if you have been made bankrupt by the courts.

  1. A creditor applies to the court

    A creditor that you owe $1,000 or more to may apply to the court to make you bankrupt. The creditor needs to prove to the court that the debt is owed. 

  2. An Insolvency Officer is appointed

    If the court declares that you are bankrupt, an Insolvency Officer will be appointed to your case. The Insolvency Officer represents the Official Assignee.

  3. A ‘Notice to Bankrupt’ letter is sent

    You will be sent a bankruptcy letter. The letter is called a ‘Notice to Bankrupt’.

    You must sign and return the letter to prove you have received the ‘Notice to Bankrupt’.

    The letter includes instructions and an activation code to complete a ‘Statement of Affairs’ online. You can also be sent a paper copy that you can fill in and return.

    You will need to log in to your account using RealMe and your activation code.

  4. Fill out your Statement of Affairs

    Complete the ‘Statement of Affairs’ form online that outlines your financial situation, including assets, debts, income, and expense.

    You must complete this form within 10 working days of receiving the 'Notice to Bankrupt' letter.

    Completing your Statement of Affairs

  5. Your bankruptcy is listed

    When 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

  6. Your creditors are contacted

    All your listed unsecured creditors from your Statement of Affairs will be sent a report. They can log on to our website to get updates after the first report is sent.

    You should contact your secured creditors and arrange to 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 still claim any difference in cost against you.


    Dealing with creditors

  7. During bankruptcy you have restrictions

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

    How bankruptcy affects you

  8. 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

  9. Your bankruptcy ends

    You must complete your Statement of Affairs to have your bankruptcy end.

    If you have completed your Statement of Affairs, your bankruptcy will usually end (that is, you will be ‘discharged’) 3 years from the date we receive it. 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