It’s not uncommon that someone contacting us for assistance with a New Zealand bankruptcy has already gone through bankruptcy, or a similar procedure, in a foreign country. Many of them did not realise that a foreign bankruptcy doesn’t generally get rid of New Zealand debts like student loans.
If you are going to become bankrupt overseas, and there is any chance at all that you may need to become bankrupt in New Zealand, it is in your best interests to consider the implications of a New Zealand bankruptcy as early as possible. There may be timing benefits in doing one bankruptcy slightly before another. For example, many foreign bankruptcies provide a significantly greater level of protection to the bankrupt’s assets and income than is the case in New Zealand. If you become bankrupt in a foreign country first this may provide you with protection against claims from your New Zealand bankruptcy.
Life will be easier for you if you don’t need to become bankrupt in two different countries, however, if things are bad, delay doesn’t usually help. In that case, getting both bankruptcies out of the way at the same time means that you will be able to get on with your new non bankrupt life sooner.
If you are going to become bankrupt overseas, and there is any chance at all that you may need to become bankrupt in New Zealand, it is in your best interests to consider the implications of a New Zealand bankruptcy as early as possible. There may be timing benefits in doing one bankruptcy slightly before another. For example, many foreign bankruptcies provide a significantly greater level of protection to the bankrupt’s assets and income than is the case in New Zealand. If you become bankrupt in a foreign country first this may provide you with protection against claims from your New Zealand bankruptcy.
Life will be easier for you if you don’t need to become bankrupt in two different countries, however, if things are bad, delay doesn’t usually help. In that case, getting both bankruptcies out of the way at the same time means that you will be able to get on with your new non bankrupt life sooner.