Legal Project Management Plan & Checklist
Purpose of this Guide: 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.
Jurisdiction: New Zealand High Court and the Insolvency and Trustee Service (ITS) under the Official Assignee.
The Process at a Glance: The practitioner must verify the debtor's strict eligibility criteria (no prior insolvency, zero non-exempt assets, no surplus income). Once confirmed, the practitioner drafts the electronic NAP application, verifies RealMe credentials, and lodges the application via the ITS portal. The plan then tracks the brief 12-month timeline to automatic discharge.
Key Legislation and Case Law: The NAP is governed by Part 5, Subpart 4 of the Insolvency Act 2006. Debt limits and exclusions are defined under Section 363 (recently raised from the legacy $47,000 limit to $50,000). The statutory 12-month discharge period is automatic and significantly shorter than bankruptcy.
* 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) - No Asset Procedure (NAP) 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.
Verify all prerequisite documentation has been obtained, cross-reference against the statutory requirements for this matter type, and confirm compliance with practice direction protocols.
Statutory Thresholds: The NAP debt limit under Part 5, Subpart 4 Insolvency Act 2006 is $50,000. Excluded debts (student loans, child support, fines) are subtracted from the total to calculate the assessable amount.
Prepare the relevant forms and supporting materials required under the applicable legislation, ensuring all mandatory fields are completed and all attachments are properly certified.
Business Restrictions: Unlike bankruptcy, a NAP does not automatically prohibit the debtor from management directorships, but the $1,000 new debt disclosure limit strictly applies.
Draft and dispatch formal correspondence addressing the procedural requirements at this stage, including any required notices, requests for information, or proposals for resolution.
Travel & Duration: A NAP lasts exactly 1 year. There are no travel restrictions applied to the debtor during this time.
Coordinate the collection and review of all financial documentation required for disclosure, including statements, valuations, and supporting schedules as mandated by the rules.
Register Retention: Similar to bankruptcy, NAP records are retained on the public register for 4 years post-discharge (total of 5 years).
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