In the past, it was unusual for the Official Assignee to pursue overseas property owned by someone who had become bankrupt in New Zealand. This has changed. The change was gradual at first. The situation now is that if you become bankrupt in New Zealand, and you own a property in certain other countries, that it may be at risk. Not all at risk properties are pursued and this may depend on the amount of equity, which country the property is in, the amount of your debt, degree of cooperation, proposals put forward for dealing with the claim, your circumstances, and the general features of the case.
In situations where the Official Assignee decides that the bankrupt may be uncooperative or may try to defeat the Official Assignee's potential claim, legal proceedings to pursue the property can be issued in some foreign countries without prior notice to the bankrupt.
If your debt is much larger than your home equity, you may be willing to take the risk with your home. In some cases, for example, where there is not much equity, or there are difficult personal circumstances, this may increase the likelihood of a mutually agreeable resolution as long as there is a sensible and cooperative strategy for dealing with the Official Assignee. There may also be resolution options that involve payment over time or at a later date.
If you are trying to negotiate with the Official Assignee it is best to have one line of communication, to respond on time to all requests, and to try to be pro active in anticipating their requirements.
In situations where the Official Assignee decides that the bankrupt may be uncooperative or may try to defeat the Official Assignee's potential claim, legal proceedings to pursue the property can be issued in some foreign countries without prior notice to the bankrupt.
If your debt is much larger than your home equity, you may be willing to take the risk with your home. In some cases, for example, where there is not much equity, or there are difficult personal circumstances, this may increase the likelihood of a mutually agreeable resolution as long as there is a sensible and cooperative strategy for dealing with the Official Assignee. There may also be resolution options that involve payment over time or at a later date.
If you are trying to negotiate with the Official Assignee it is best to have one line of communication, to respond on time to all requests, and to try to be pro active in anticipating their requirements.