Unfortunately there are a lot of people who do not understand the difference between bankruptcy and the no asset procedure. The no asset procedure is for people who have debts under $40,000 and it only lasts for one year, but it is NOT for people who have student loan debts. The no asset procedure will not get rid of any of your student loan debt. Only bankruptcy will do this. Please contact us if you have any questions.
We are regularly contacted by student loan borrowers who have been told, by people who should know better, that bankruptcy does not get rid of student loans.
Unfortunately there are a lot of people who do not understand the difference between bankruptcy and the no asset procedure. The no asset procedure is for people who have debts under $40,000 and it only lasts for one year, but it is NOT for people who have student loan debts. The no asset procedure will not get rid of any of your student loan debt. Only bankruptcy will do this. Please contact us if you have any questions. Most overseas based student loan borrowers have to pay interest on their student loans. Most New Zealand based borrowers do not. The interest charged to overseas based borrowers often causes the total debt to spiral out of control. We know of many cases where someone has started with a small student loan debt of, say, $10,000, they hear nothing from the IRD for many years, and then suddenly they receive a demand for more than $100,000.
There is a huge benefit to not having interest accruing on your loan. Did you know that some overseas based borrowers are able to be treated as if they were New Zealand based? This means that they get the benefit of no interest even though they live overseas. If any of the following situations applies to you, you may be eligible to be treated as being New Zealand based even though you live overseas:
We can advise you on whether you might be eligible to apply for zero interest and we can also make the formal application for you so that you increase the likeligood of success. Please contact us if you have any questions. |
Archive
January 2019
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