We are seeing increasing numbers of cases where student loan debtors have returned to live in New Zealand and the IRD is taking an extra 20% from their pay. The deductions start without warning and, in many cases, the people concerned are left without enough income to live on. It can also cause embarrassment at work. If this happens to you, you still have options and these may include bankruptcy, payment arrangements, a write off of penalties or interest (if the criteria apply), and/or a hardship application.
If you are an overseas resident student loan debtor thinking about coming back to New Zealand to live you should consider this issue as part of your decision making process. If you have student loan arrears there is a high risk that you will be subject to a compulsory wage/salary deduction if you don’t take steps to sort it out before you return. If you are affected by a compulsory wage deduction order we can help in most cases. Please contact us to discuss.
If you are an overseas resident student loan debtor thinking about coming back to New Zealand to live you should consider this issue as part of your decision making process. If you have student loan arrears there is a high risk that you will be subject to a compulsory wage/salary deduction if you don’t take steps to sort it out before you return. If you are affected by a compulsory wage deduction order we can help in most cases. Please contact us to discuss.