Made bankrupt by the court (creditor's application)

If you owe someone $1,000 or more, they can apply to the High Court to make you bankrupt. This is called a creditor’s application. If the High Court Judge agrees, they will make an order declaring you bankrupt.

When the Court makes you bankrupt, the Insolvency and Trustee Service will become your main point of contact. We are also called the Official Assignee.

We will:

• assign an Insolvency Officer to manage your case. Our Insolvency Officers represent the Official Assignee.
• work with you to understand your financial situation and explain your responsibilities.
• contact the people you owe money to — your creditors.

First step — Complete your Statement of Affairs

We will send you a letter that confirms the date of the bankruptcy order.

The letter will include the following.

• Your formal ‘Notice to Bankrupt’.
• A guide with instructions for completing your Statement of Affairs. The guide also includes important information about your responsibilities during bankruptcy.
• A user account activation code. You need this code to complete your ‘Statement of Affairs’ online.

How to activate your account

1. Enter your Activation Code and email address.
2. Read and acknowledge the online account terms and conditions and our privacy statement.
3. Enter your existing RealMe ® username and password or create a new one.

Tip — If you have used RealMe before, for example to renew your passport, you can use your existing login. If not, you can create one during the account activation process.

Learn more about RealMe logins(external link) — RealMe

How to complete your Statement of Affairs

You must file a Statement of Affairs within 10 working days of receiving your notice of bankruptcy letter from us. 

The information you will need

You do not need to give us copies of any documents at this stage, but you will need them to hand. Before you start, gather your:

Identity details

• IRD number
• Passport(s)

Financial information

• Weekly income details for you and your partner if you have one. 
• Details of your assets including KiwiSaver, vehicles, cryptocurrency and shares.
• Details of your usual expenses including rent, power, groceries, school fees.
• Details of your debts.

Assets and history information

• Details of any bank accounts for the last 5 years including overseas accounts and TAB accounts.
• Your addresses, phone number(s) and email address(es) for the last 5 years.
• Details of any accountant or solicitor you have used in the last 5 years.

Step by step

• Activate your account to log in.
• Choose ‘File Statement of Affairs’.
• Complete the online form by providing details of your financial situation, including
  • assets
  • debts
  • income, and 
  • expenses.

Our online form lets you save your progress so you can come back later.

Things to be aware of

Your bankruptcy is publicly recorded

Your name and some of the details of your bankruptcy will be added to the public Insolvency Register. They will remain there for the term of your bankruptcy plus 4 years after your bankruptcy ends.

How to search the Insolvency Register

We will contact your creditors

We will send a report to every unsecured creditor listed in your Statement of Affairs. This report will explain your financial position and set out the steps we will take to manage your bankruptcy. After this first report, your creditors can log in to our website to see further updates.

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 or repossessed.
  You can then stop making any payments under the agreement. They can file a claim with us for any unpaid balance.

Learn more about dealing with creditors

You have responsibilities and restrictions

Bankruptcy will impact your life. During your bankruptcy you have some extra responsibilities and restrictions.

For example, you must apply for permission to:

• travel outside of New Zealand
• run a business, or
• work for a member of your whānau (family) member or for a business they control.

If you don’t meet your responsibilities, your bankruptcy may be extended. In serious cases enforcement steps may be taken, including prosecution.

Read more about your responsibilities and restrictions

You can manage your bankruptcy online

Using your online account, you can update your personal details or update your asset information. If you make repayments during your bankruptcy, you can track your progress.

Learn more about managing your bankruptcy

When your bankruptcy ends

Your bankruptcy will usually end 3 years from the date we receive your Statement of Affairs. When your bankruptcy ends you are 'discharged' from bankruptcy.

Your bankruptcy status in the Insolvency Register will automatically change from 'Current' to 'Discharged’. Your details will remain on the public register for a further 4 years.

More about ending bankruptcy