Legal Project Management Plan & Checklist
Purpose of this Guide: Use this plan when representing a New Zealand debtor facing unmanageable debt who needs to formally enter personal bankruptcy. It guides the practitioner through assessing financial position, determining eligibility for bankruptcy versus alternative procedures, preparing the Form 4 Statement of Affairs, and managing the three-year adjudication timeline.
Jurisdiction: New Zealand High Court and the Insolvency and Trustee Service (ITS) under the Official Assignee.
The Process at a Glance: The practitioner must first compile a complete inventory of the debtor's liabilities, assets, and income. The system calculates whether the debtor qualifies for the No Asset Procedure (NAP) or must proceed to bankruptcy. If bankruptcy is required, the practitioner prepares the electronic Statement of Affairs and lodges it via the ITS portal. Once adjudicated, the plan tracks the 3-year statutory discharge period, assesses ongoing income contributions, and manages any Official Assignee objections or cross-border enforcement issues.
Use this plan when representing a New Zealand debtor whose total assessable debt is between $1,000 and $50,000, who has no realisable assets, and who has no surplus income to make repayments. The No Asset Procedure (NAP) is a one-off, low-intervention alternative to full bankruptcy that discharges the debtor after exactly 12 months.
Use this plan when representing a New Zealand debtor whose debts typically exceed $50,000, who has complex financial affairs or realisable assets, and who wishes to negotiate a formal compromise with creditors to avoid bankruptcy. A Part 5 Proposal allows the debtor to propose a binding settlement.
Use this plan when representing a New Zealand debtor whose unsecured debt is $50,000 or less, who possesses surplus income to make sustainable repayments, and who wishes to avoid bankruptcy to retain ownership and control of their assets. A Debt Repayment Order (DRO) consolidates debts into a supervised payment plan.
Key Legislation and Case Law: The process is governed by the Insolvency Act 2006, the Insolvency (Personal Insolvency) Regulations 2007, and Part 24 of the High Court Rules. Key thresholds include Section 158 (retention of exempt assets like tools of trade, $6,500 motor vehicle, $1,300 cash), Section 147 (income contributions based on Statistics NZ data), and Section 290 (automatic discharge after 3 years).
* Disclaimer: We're nobody's lawyer, because we aren't lawyers. You are, so you know better than to take legal advice from an app. We also aren't accountants or dog trainers - just digital spirit guides taking zero liability for any of this. This site exists to gather the collective knowledge of practitioners like you. Verify everything and submit your feedback on the Personal Insolvency (Debtor) matter plan to improve the playbook. THIS IS NOT LEGAL ADVICE, it's a request for input.
This legal matter plan provides a structured workflow for Bankruptcy & Insolvency cases, outlining the standard Insolvency Administration process. Utilize these tracking templates to manage your legal cases efficiently.
Got a question about this plan?
Ask in the practitioner Discord - edge cases, rule changes, and jurisdiction-specific nuances, all in one place.