IRD and Student Loan Debt, New Zealand
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Closing Soon for the Holidays

23/12/2017

 
Our office will be closing on Christmas Eve and we will reopen after 3 January 2018. If you are bankrupt and need urgent travel permission please contact the NZ Insolvency Service http://www.insolvency.govt.nz . 

If you have an urgent inquiry about your student loan please contact the IRD. 

We can help you before Christmas

18/12/2017

 
We can help you with your student loan debt issues right up until Christmas Eve. At the moment the IRD is very responsive too, which means that not only can you get advice on your options this week, but there is a good chance that you could make substantial progress with an IRD negotiation if this was started in the next couple of days.

​Please contact us if you need help.

Student loan myth #12

12/12/2017

 
Student loan myth #12:  I'm not eligible for a NZ student loan interest write off because I paid for my own overseas study.

​Student loan truth: If you have studied full time overseas, at a high enough level,  you may be eligible for a write off of some of your NZ student loan interest, regardless of who paid for the overseas study. The rules change frequently and you may need to deal with up to three different IRD student loan departments, but it is worth asking if it looks like you might qualify. Depending on when you studied, you may might only need a  letter from the tertiary institution, or you may also need an NZQA assessment. Please ask us if you need help.

Bankruptcy guaranteed or your money back

7/12/2017

 

Only you can decide if student loan bankruptcy is right for you. Some of the advantages are:
  • That it will get rid of your New Zealand student loan. In three years (in almost all cases) you will no longer be bankrupt, and you will be free of the student loan debt nightmare.
  • It will stop IRD harassment.
  • It will stop the IRD being able to threaten you with arrest.
  • It will stop the government being able to chop and change the terms of your student loan debt contract without advice to you.
  • You will no longer have to deal with the IRD. While some staff are professional and helpful, many are cruel, inconsistent and threatening which is why there is such a high rate of self-harm for people who have debt related contact with the IRD.
  • If you do have to negotiate anything you will be doing so with the Official Assignee/Insolvency Service who usually treat cooperative people with respect, reasonably, and in a way that allows for reasonable discussion. 
  • At any time the Labour government may remove the option of student loan bankruptcy.
  • Some people feel a moral obligation to repay the original debt if they become bankrupt. This can be negotiated.

We fear for the many people who will be left with no way out if the government abolishes the bankruptcy option. We have clients whose lives have been saved by becoming bankrupt because they were at risk of suicide as a result of the way the IRD was treating them.
​
It is possible for you to initiate your own bankruptcy, however, the advantage of using us is that we have handled hundreds of student loan bankruptcies. We take the pressure off you in dealing with the Official Assignee and the IRD, we make submissions and argue respectfully with the Official Assignee so that we achieve the best possible outcome for you. Examples include many successful submissions on bankruptcy budget contribution issues, successful applications for travel while bankrupt even where there with issues with the bankrupt’s conduct, and negotiations for the bankrupt to retain assets above the allowed limit.

What we offer is a money back guarantee. If we do not successfully obtain bankruptcy for you within 4 weeks of you providing us with all required information, we will refund your fee in full. Please note that in most cases bankruptcies are much faster than 4 weeks, and this offer depends on there being no change in government policy. Please note that bankruptcy is not suitable for all cases.

​  

Student loan myth #11

5/12/2017

 
Student loan myth #11: I don't know what I owe and I'm scared to contact the IRD because then they'll know where to find me.

​Student loan truth: The IRD can easily find you anyway, especially if you live in Australia. Dealing with the problem now will stop it growing and will also mean that you still have available to you options like bankruptcy that could be taken away in the future.

Student loan myth #10

5/12/2017

 
Student loan myth #10: I can't go bankrupt because I don't earn anything.

​Student loan truth: Student loan bankruptcy relates to having debt. How much you earn relates to whether you might have to pay regular contributions while you are bankrupt. If you earn nothing you shouldn't have to pay contributions. Earning nothing won't stop you becoming bankrupt.

Student loan myth #9

5/12/2017

 
Student loan myth #9: I'll just pay the amount on my statement, or the total in MyIR, and be done with it.

​Student loan truth: Several people this year have advised us that, after paying what they believed to be the final student loan debt balance, the IRD has come back and said there is more to pay. The cases we have seen have involved an extra $10,000-$30,000. Before paying what you believe to be the final balance of your debt always check this with the IRD and get it in writing. Even if the IRD adds an amount to your debt, your negotiating power is much greater before you pay than after.

Student loan myth #8

5/12/2017

 
Student loan myth #8: I can't get this mess sorted before Christmas.

​Student loan truth: If you start now (or very soon) there is a high chance that you could have your student loan problem sorted before Christmas which will allow you to breathe more easily.

Student loan myth #7

5/12/2017

 
Student loan myth #7: I've paid back my student loan, how do I get my penalties back from the IRD?

​Student loan truth: The IRD uses the write off of penalties as a tool to encourage compliance and payment. If you ask before you pay, a substantial write of might be offered. If you ask after you have paid, the IRD has no incentive to offer a write off so the chances are much less.

Student loan myth #6

5/12/2017

 
Student loan myth #6: I'll just pay off the amount I borrowed and be done with it.

​Student loan truth: If you live overseas it is almost certain that this will not be enough for the IRD. If you just pay off the original borrowings the IRD will still pursue you for any overdue arrears and they will still expect minimum annual payments. Before paying a large amount of money it is best to know where you stand so that you can make a plan and take advantage of available write offs.

Student loan myth #5

5/12/2017

 
Student loan myth #5: If I'm NZ bankrupt I can't come back at Christmas.

​Student loan truth: All you have to do is to apply in advance for permission to leave New Zealand. In most cases this is easy to get. If you are NZ bankrupt you must have this to leave New Zealand. We can help.

Student loan myth #4

5/12/2017

 
Student loan myth #4: I'm too frightened to travel home for Christmas. I don't want to be arrested.
​
Student loan truth: Most people with overdue arrears are not going to be arrested if they come home for Christmas. But some people are at risk. In most cases the people at risk have large arrears and have been warned that they might be arrested. If you are concerned, the best thing to do is to deal with your situation. The first step is to find out what your options are and then come up with a plan. Not dealing with the problem will make it worse and also causes lots of anxiety. If you start now there is a good chance that your student loan problem will be under control before Christmas and that you can travel without worry.

Student loan myth #3

5/12/2017

 
Student loan myth #3: They can’t arrest me if I travel on a foreign passport.

​Student loan truth: Yes, they can. If the IRD decides that someone is a student loan criminal, they can arrest them at the border no matter which passport they travel on.

Student loan myth #2

5/12/2017

 
Student loan myth #2: CCI or Baycorp contacted me about my NZ student loan. They say my debt is $x.

​Student loan truth: In most cases, that we know of, the amount demanded by CCI/Baycorp is only the overdue arrears part of the student loan debt. It is not the full debt. The full debt may be much more. Paying the amount demanded without first having full knowledge of the overall debt, and all of your options, is like having cancer surgery without first trying to find out how big the tumour is.

Student loan myth #1

5/12/2017

 
NZ student loan myth #1: I live overseas and don't have to pay because I don't earn anything.

​Student loan truth: Overseas based borrowers have to make compulsory payments regardless of income (unless they have been granted hardship).

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