- Case 1: Client was forced out of New Zealand because they were gang raped here. Being in New Zealand triggers their PTSD. The IRD charges them interest and penalties on their student loan. The client's life circumstances make it impossible for them to get an ordinary job that would generate enough to pay what the IRD demands. This person feels duty bound to pay their debts and not use bankruptcy as a solution. Money from prostitution is being used to pay the IRD's demands.
- Case 2: In the early 1990s, the original debt was for $35,000. The client paid $30,000 in the mid 1990s and went overseas believing that that the IRD would be in contact with them if there were ongoing obligations. At that stage the original debt should have been $5,000. The IRD made no contact until 20 years later when they demanded $80,000. Even if this person now offers $50,000 to settle, it will be refused by the IRD. The likely result is that the person will feel that there is no way out other than by becoming bankrupt. The IRD will miss out to the tune of $50,000 and get nothing.
Two recent cases show that the student loan scheme needs an overhaul. Some details have been changed to protect client confidentiality.
2 Comments
Jason Gardner
19/10/2016 12:32:58 pm
Couldn't agree more!! The anxiety my partner has suffered since being slammed with his enormous debt is soul destroying.There must be a more realistic debt recovery that won't financial cripple ,bankrupt or make financial refugees of thousands of kiwis
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Delilah Murphy
25/3/2017 10:52:49 pm
The NZ IRD is not trying to assist anyone but themselves. This department is a rule unto themselves, we signed these contracts as 18 year old students, we agreed to the terms that were in this contract, then. How the government can then sign off on changing the terms to suit their own short sightedness is criminal. If they genuinely wanted to assist ex NZ'er in paying off this debt they would wipe off the arrears and interest on arrears and let us pay the interest owed on the principle amount.
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