Options
Sometimes people find that paying back a student loan debt becomes unrealistic or impossible. Even those who try to pay often become discouraged because penalties and interest cause the debt mountain to grow out of control very quickly.
Now that the Inland Revenue Department is aggressively pursuing overseas student loan debtors it has become more important than ever to deal promptly with any student loan debt problems. Doing nothing is not an option. Unless you are able to pay your student loan debt obligations, it is better for you that you take action as soon as possible in order to seek an arrangement with the Inland Revenue Department or to explore alternatives like bankruptcy.
For some student loan debtors, bankruptcy is the best option as it clears the debt and allows them to start again. If you become bankrupt you no longer have to worry that the IRD will change the rules without telling you, or that they will come back to you for more, years after you had settled. If you are living overseas, a New Zealand bankruptcy may have no negative impact on you at all; however, there are still issues to consider before you make the decision to become bankrupt. Because bankruptcy is a serious step it is not one that you should take without being fully aware of the costs and benefits, and possible alternatives. Alternatives may include a negotiated reduction in debts owed, with the IRD writing off some of the balance due, or a repayment arrangement. Because the bankruptcy option may be taken away, our advice is to consider this soon if it is a possibility in your case.
If you are living in New Zealand, bankruptcy may still an option for you. If you aren’t able to pay your student loan debt it is usually better that you are in control and decide on the timing of the bankruptcy (if this is necessary). Before you become bankrupt there are things that you must consider so that the impact on you is minimised. If you don’t consider things beforehand you can find that inheritances that come to you after bankruptcy are taken by the Official Assignee, that your bank accounts are cleared, and that you are unable to work.
We often advise people on the pros and cons of student loan debt repayment negotiations and arrangements, as well as their other options including zero interest applications for overseas based debtors, and bankruptcy. We can also assist with IRD negotiations and we have negotiated millions of dollars of settlements with the IRD for clients.
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Now that the Inland Revenue Department is aggressively pursuing overseas student loan debtors it has become more important than ever to deal promptly with any student loan debt problems. Doing nothing is not an option. Unless you are able to pay your student loan debt obligations, it is better for you that you take action as soon as possible in order to seek an arrangement with the Inland Revenue Department or to explore alternatives like bankruptcy.
For some student loan debtors, bankruptcy is the best option as it clears the debt and allows them to start again. If you become bankrupt you no longer have to worry that the IRD will change the rules without telling you, or that they will come back to you for more, years after you had settled. If you are living overseas, a New Zealand bankruptcy may have no negative impact on you at all; however, there are still issues to consider before you make the decision to become bankrupt. Because bankruptcy is a serious step it is not one that you should take without being fully aware of the costs and benefits, and possible alternatives. Alternatives may include a negotiated reduction in debts owed, with the IRD writing off some of the balance due, or a repayment arrangement. Because the bankruptcy option may be taken away, our advice is to consider this soon if it is a possibility in your case.
If you are living in New Zealand, bankruptcy may still an option for you. If you aren’t able to pay your student loan debt it is usually better that you are in control and decide on the timing of the bankruptcy (if this is necessary). Before you become bankrupt there are things that you must consider so that the impact on you is minimised. If you don’t consider things beforehand you can find that inheritances that come to you after bankruptcy are taken by the Official Assignee, that your bank accounts are cleared, and that you are unable to work.
We often advise people on the pros and cons of student loan debt repayment negotiations and arrangements, as well as their other options including zero interest applications for overseas based debtors, and bankruptcy. We can also assist with IRD negotiations and we have negotiated millions of dollars of settlements with the IRD for clients.
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