Student Loan Debt, New Zealand

Bankruptcy travel permission

25/10/2019

If you are a New Zealand bankrupt, and you want to leave New Zealand (for example: after a Christmas holiday visit home), it is essential that you obtain permission from the Insolvency Service before you leave New Zealand.

If you leave New Zealand without first obtaining permission, you can be punished with a jail term of up to one year and a fine of up to $5,000, or both. It's not worth the risk. It doesn't matter which passport you travel on.

The Insolvency Service will be closing from 3pm on Tuesday 24th December and will re-open at 8.30 am Friday 3rd January 2020. If you need travel permission for the Christmas period, we recommend starting to plan ahead now. Once you have applied for permission it can take up to 10 working days to be granted. Being granted permission is not automatic, but in most cases it is granted. There are various factors that will increase your chance of receiving permission to travel.

We recommend that you try to apply for permission once you know your travel dates, but before booking tickets, just in case permission is refused. If permission is refused you may lose your travel payments. If you are already in New Zealand, you will legally be unable to leave.

If you are not yet bankrupt, and this is what you intend to become, you need to go through that process first, and obtain the bankruptcy order, before the travel permission process can begin. It usually takes about two weeks after filing the bankruptcy application, before the bankruptcy order is made, but we would expect this time to become longer the closer it gets to the busy Christmas season. If you need to apply for bankruptcy and have it done and dusted well before the Christmas period we recommend starting this now, or in the next 1-2 weeks.

Get it Sorted Before Christmas: Start Now

14/10/2019

It is 9 weeks from now until the middle of December, when everything slows down in New Zealand, as people shift their focus to Christmas preparations. Government offices, like the IRD and the NZ Insolvency and Trustee Service also completely shut down for a period of time over Christmas and New Year.

If you have decided that a New Zealand bankruptcy is the most realistic way to resolve your debt problem, and you start now, you are likely to be bankrupt in plenty of time before Christmas.

If you start now with an IRD negotiation, there is also a good chance that things could be sorted well before Christmas.

Either way, if the debt is sorted, you will be able to relax at Christmas time knowing that the IRD will not be chasing you, and that there is no risk of arrest if you travel home (you will need permission to leave if you are bankrupt but this is usually easy to obtain).

By starting now, or soon, you will avoid the delays that arise when people apply at the last minute just before things shut for Christmas.

Types of IRD Letters

6/10/2019

People who have student loan debt arrears get different kinds of letters from the IRD. Common types are described in this blog post.

At one end there is the letter that comes out of the blue, after not hearing from them for 20 years, where they ask you to contact them. This letter means that you are on the IRD's radar, they know where you are, and the debt is not going to go away or be forgotten by the IRD. While it may be some time before the IRD takes serious steps against you (or it may be tomorrow), this type of letter means that it is time to get the debt sorted before things gets worse and before you run out of time.

A common stronger letter will be one that insists that you make contact within a stated amount of time (usually 30 days). This type of letter should not be ignored as doing so will mean that you will probably receive a demand notice in the near future. If the IRD knows that you are working hard and trying to find a solution this lessens the risk of their action against you being escalated.

Then there is the type of letter that is a "final notice" and which often states that the debtor has broken the law, is at risk of arrest, and that legal proceedings will be taken if payment is not made within a short time frame. Based on our many years of experience, these letters are not bluff and the IRD may even have the legal proceedings drafted and ready to go at the time when the letter is sent to you. Sometimes the letter will arrive personally via a process server, or by post, or by email. This type of letter is very serious and doing nothing may mean legal action and bankruptcy not just in New Zealand, but in the country in which you live. If you do get this kind of letter, urgent action is needed. Even if bankruptcy is your only real choice at this late stage, if you have the choice of bankruptcy in New Zealand or overseas, you are usually better off to try to keep this to New Zealand only, as the impact on your overseas credit rating, or your life overseas, may be minimal if you don't have much in the way of assets or income. If the IRD bankrupts you in the country in which you live the impact on your credit rating will be serious.

IRD's September Debt Collection Letters

2/10/2019

Did you receive a letter from the IRD or its debt collectors in September?

This is the most aggressive we have ever seen the IRD. Many people have contacted us to get advice, to get assistance with negotiating with the IRD, or help with bankruptcy, however, please don't ignore the letters. Not only will the debt get worse, but the next step may be a bailiff on your door step or arrest if you return to New Zealand. It's not easy dealing with the debt, but it is better than doing nothing.

Student loan debts cause anxiety

30/6/2019

Jessica Buck is typical of many of the people we work with. A large student loan debt ruining her life and relationships. Student loan debt is constantly on her mind:

They’re always running around in the back of my mind, reminding me that this month’s payment is swiftly approaching, regardless of what my bank account looks like. It's stressful, to say the least, and can easily develop into a state of constant anxiety. And right now, I can't afford my student loans, so that anxiety has escalated to the next level.

Ms Buck's problem is US student loan debt, but the effect on many NZ student loan debtors is the same. Having a student loan debt can easily cause anxiety, depression, and loss of quality of life. The sooner you deal with it the better.

IRD Considering Overseas Bankruptcies?

2/6/2019

The IRD states that it could take more serious actions against overseas debtors than it currently is, including applying for garnishee orders on overseas income, initiating bankruptcy procedures in an overseas court or continuing with their arrest warrant processes if the borrower crosses the New Zealand border. If you have an overseas debt that is out of control, these IRD indications should cause you to immediately deal with your debt as the possibility of being bankrupt overseas or having a garnishee order against overseas income is scary news for many people.

Currently when overseas debtors become bankrupt in NZ, to get rid of the student loan debt, the IRD does not take proceedings to also make them bankrupt overseas, meaning that their overseas credit rating remains largely unaffected (in most cases). The indication that the IRD is considering overseas bankruptcies is a game changer and would have a huge impact on an overseas resident debtor. The message is that if your debt is not under control, that the sooner you deal with it the safer you are likely to be from an escalation of IRD enforcement action.

Student Loan Debt Can Lead to Bad Outcomes

10/5/2019

"Student loan lending does not lead to good employment or income outcomes for some individuals, or for taxpayers who make a significant contribution to tertiary costs." (Ministry of Education report)

Discount Offer

2/3/2019

25% Discount Offer (more details below):

If you are ready to get your student loan debt sorted, we have some extra special assistance offers for you during March. We are offering discounts of around 25% for new advice and bankruptcy clients. If you are an existing client, and recommend someone as a new client for us, we will give them an extra discount to thank you for your business.

We offer a fast turn around and guaranteed results (some conditions apply).

This offer is available only for new business accepted before 31 March 2019.

Please contact us now if you want to get your debt sorted and receive expert assistance at a great price. To get started please email: help@studentloan.org.nz

Bankruptcy Applies for 3 Years

30/1/2019

New Zealand bankruptcy gets rid of New Zealand student loan debt. In most cases bankruptcy lasts for three years.

When you apply for bankruptcy you declare your income, debts and assets etc.

In most cases there will be a flurry of communications with the Official Assignee's representatives at the time of applying for bankruptcy, and in the few weeks thereafter. Some people never hear anything further but it is important to remember that the bankruptcy rules still apply. This includes things like advising the OA if your circumstances change and being aware that the OA may claim assets that you acquire during the bankruptcy. So, if for example, you saved up some money during the bankruptcy that money could be seized by the OA. If they found out about it after your discharge there would still be risk.

Recently we have noticed a flurry of communications from the OA to people who have been bankrupt for some time. The OA is seeking detailed information about the bankrupt's current circumstances. If you receive such a letter it is very important that you reply accurately, and on time. Our consistent experience with the OA is one of professionalism and reasonable flexibility, however, they do not tolerate misleading information or the failure to adhere to deadlines. If you cannot keep to a deadline it is important that you seek a formal extension before the deadline date (which will probably be granted if the request is reasonable). If you have any concerns about your information we can help you with the issues and by negotiating with the OA if there are issues.

Hardship Application/IRD Negotiation Testimonial

29/1/2019

There's no better feeling than being able to get a great resolution for a client. In this case we negotiated a successful resolution with the IRD, including a hardship application. We commenced acting in late 2018. The client needed additional time to get some of his documents together and the IRD were helpful in allowing an extension of time until early January. Within one day of the additional documents being provided to the IRD, the application was approved. In some cases negotiations can take much longer, but this is an example of what is possible. Our client asked to provide a reference and this is what he had to say:

I had buried my head in the sand for a number of years over my student debt and didn't realise how much the lingering anxiety was affecting my frame of mind. I contacted studentloan.org.nz with no expectations and found Kristina's service to be affordable, prompt and all about finding a solution. I'm overjoyed about the outcome and as they say, moving on with my life. If you are at a standstill with student debt this is the path to choose. It starts with one email, send it today!

Have a great weekend
"D" in freezing London

Doing Nothing About Your Debt Won't Make it go Away

28/1/2019

Kentucky student loan foregiveness program for teachers

27/1/2019

Student loan debt burdens are common across the English speaking world, but in Kentucky they've come up with a solution to encourage teachers to become more highly skilled while having their student loans forgiven.

In Auckland many teachers can't afford to live because of sky high property prices, and modest pay rates. The thought of having to take on more debt to improve qualifications is unlikely to make sense. Perhaps our country should be looking at best practices internationally to ensure optimal access to a quality education that benefits not just the student, but the community.

Guaranteed successful NZ bankruptcy applications

14/1/2019

Please email us now if you need help.

New Year. New You?

7/1/2019

If you haven't yet dealt with your student loan debt issues, now is the time to do so so that you don't spend the rest of the year worrying about it. If you live overseas, your debt is large, and you have no assets, a New Zealand bankruptcy may be the most effective way to deal with the problem.

We provide a 100% guarantee on bankruptcy applications being successful (providing you provide all necessary information). You can become bankrupt in as little as 2-3 weeks of starting the process (or longer if you prefer).

What Contact Details Can the ATO Share With the IRD?

13/12/2018

The IRD has wide ranging powers to obtain the details of student loan debtors who live in Australia. The ATO is empowered to provide the IRD with any of the following details:

unique identifier
date of birth
personal telephone number
work telephone number
mobile telephone number
residential address
email address, and
date of death.

Travel Information Provided to the IRD

11/12/2018

Every year, after Christmas or Easter, we are contacted by many student loan debtors who don't understand how the IRD has obtained their details after they have visited family in New Zealand. The IRD has an information sharing agreement with the Customs Department and the IRD is provided with a list of information, including:

The person's arrival card information including the:
full name
date of birth
date and time and direction of travel (arrival or departure)
New Zealand port, and
prime overseas port (last port of call for arrivals and first port of call for departures).
and tax file number.

Student loan debtors are legally required to keep the IRD updated on their contact details but often this is overlooked. If you are contacted by the IRD, shortly after a visit home, this is how they have probably obtained your details.

Black Friday Special

24/11/2018

Black Friday Special: 30% off all new advice and services booked before 5 pm on 30 November 2018 (NZ time). Not available with other offers or discounts. Please contact us now if you need help.

Big Discounts Offered in November

21/11/2018

We are offering substantial discounts off our normal fees for assisting with bankruptcies or IRD negotiations, if you proceed during November. We want to help as many people as possible to have a stress free Christmas knowing that their student loan debt has been resolved.

Please contact us directly for details.

There's Still Time

14/11/2018

There's still time to get your debt problem sorted before Christmas but you need to start now, or very soon. If you are travelling home to New Zealand for the holidays the IRD will receive your contact details and they may even aggressively contact you before you have left the country. You can avoid this by dealing with it now.

Wrong IRD Advice

6/11/2018

We have had two reports today of student loan borrowers being given wrong information by the IRD. In the first example, we are told that the IRD stated that a student loan debt of more than $40,000 was "too low" for a bankruptcy application. This is wrong. If your debt is more than $1,000 you can apply for bankruptcy.

In the second example, we are told that the IRD officer advised that you have to be living in New Zealand to apply for NZ bankruptcy. Wrong again. We have never had any difficulty in processing NZ bankruptcy applications for our clients and they live all over the world.

It is not in the IRD's interests that student loan borrowers seek the protection of bankruptcy, however, we hope this isn't a reason for giving wrong advice.

Our Bankruptcy Discharge Clients

4/11/2018

We have been doing this work for so long, and worked for so many people, that we often receive feedback from people who have come out of bankruptcy after three years and who have been able to start wonderful new lives, free from the stress of student loan debt. It is special to be able to help people through what might otherwise be a stressful and frightening life event. Recently we received unsolicited testimonials from clients who had been, or were about to be discharged:

Because of Kristina's help, I am now automatically discharged from my bankruptcy ! Three years ago I had a hefty amount of student loans with the interest steadily increasing. I was (and still am) living overseas and didn't know where to begin. I begin researching online and came across the studentloan.org.nz website. The fees were affordable, the website showed steps to bankruptcy as well as the choices that are available so I contacted Kristina and asked for her help. I found Kristina to be extremely knowledgeable, understanding and knew exactly what options were available to me and where to start. If I had questions she was able to answer each one. She was also able to help me file the necessary paperwork to travel back to New Zealand for my mother's funeral. From the very beginning to the end Kristina made the whole process of a bankruptcy a lot less scary than I had anticipated. My stress was kept to a minimum due to Kristina's expertise and service. I'm so glad I made the decision to use Kristina's services !! I would thoroughly recommend her to anyone thinking about declaring bankruptcy. Thank you Kristina !!! Thanks again for everything ! All the best supporting others in their financial concerns !

I really appreciate your knowledge and services through this period. It has been life changing.

This week I received an email with a letter confirming my release from bankruptcy. I would like to sincerely thank you for your help during the process. I am very grateful as it was a stressful and challenging time. Best of luck supporting others in financial trouble. I believe you are providing an excellent service and are making a difference in peoples lives. Regards,

My time as a bankrupt is nearly completed which is great. I want to thank you again for everything that has helped relieve a lot of anxiety and stress.

Student Loan blogger award

3/11/2018

Our student loan blog has been chosen as being in the top 40 worldwide, out of thousands of student loan blogs. We appreciate the recognition for the work that we do to educate and assist.

Pay Us Only What You Can Afford

1/11/2018

We don't want anyone's Christmas ruined by a student loan debt problem. We know that money is tight for many of you, and especially at this time of year. As a a special pre-Christmas gift, we are offering advice, bankruptcy assistance, and IRD negotiation assistance, at a negotiated affordable price. Assistance will be provided very promptly.

Simply contact us and let us know what you need, and what you can afford for advice or assistance. We will do our best to agree an affordable price that works. Please note that this offer is available until 15 November 2018.

Get It Sorted Before Christmas

30/10/2018

If you start now there is still time to get your student loan debt problem resolved before Christmas (in most cases). Getting it resolved will mean no risk of arrest at the border, or of having your Christmas holiday plans destroyed by debt collectors.

Please contact us if you need prompt help to understand your options or to get a resolution underway.

What's worse than a degree and a student loan debt?

24/10/2018

The Answer: A part finished degree with a student loan debt.

Figures released this week show that 36% of bachelor degree students do not complete their degree. Some students find that the quality of the degree, or teaching institution, is not worth spending more time and money on, others find that tertiary education is not for them. For some it is the realisation that the jobs will not be there for them when they graduate. Lachlan Maclean, a biology and computer science student stated that:

"It's a lot of money to be going to university. There's really no point continuing, doing three more years, if you're going to get a mediocre job out of it."

Our view is that the system is deeply flawed. Nevertheless, we have what we have, for now. Our advice to people thinking about spending tens of thousands of dollars on tertiary education is to be sure that this is what you want, to be sure that the cost is going to be worth the anticipated future return, and that the quality is acceptable.

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