Personal debt
An insolvency procedure is a formal way to deal with your debt, but it will impact many aspects of your life.
For individuals, there are 3 formal ways to deal with debt you cannot repay:
- Debt Repayment Order (DRO)
- No Asset Procedure (NAP)
- Bankruptcy
If you're finding it hard to pay back your debts, there are other options to look at before you consider an insolvency procedure like bankruptcy.
On this page
Compare your options
Use our tools to work out which insolvency procedure will work for you.
Debt Repayment Order
A Debt Repayment Order (DRO) is a debt repayment plan that gives you extra time to pay off your debt. It's the best insolvency option for you if you owe less than $50,000 in unsecured debt and are able to make some repayments on your debts.
No Asset Procedure
A No Asset Procedure (NAP) clears your debt and tells your creditors (people you owe money to) that they will not receive the money owed to them. It's the best insolvency option if you owe less than $50,000, have no assets, and have no extra money to make repayments towards your debt.
Bankruptcy
If you become bankrupt, your debt will be cleared and it will impact your life. You can be declared bankrupt if you owe more than $1,000 in unsecured debt, but it’s the only formal option for people who owe more than $50,000.
Applying for insolvency
You can apply online for any of the 3 insolvency procedures. In your application you must give details of your financial situation by filling out a 'Statement of Affairs'.
How insolvency affects you
If you're entering a formal insolvency procedure, you'll need to understand the impact it will have on your life.
Life after insolvency
What you should do after you’ve been through an insolvency process.