sign up log in
Want to go ad-free? Find out how, here.


Select chart tabs

number reported
number reported
number reported
number reported

This data is published monthly by the Insolvency and Trustee Service of the Ministry of Economic Development.

Bankruptcy is a way of dealing with debts you cannot pay. Becoming bankrupt is a very difficult decision and it should only be viewed as a last resort. While it offers relief from most of your debts, you will be subject to a number of restrictions and limitations.

The "No Asset Procedure" (NAP) is a kind of bankruptcy-lite, an alternative way of dealing with debts you cannot pay. This is a 'new' option available since December 2007 and is not formal bankruptcy. You can only use the No Asset Procedure once – ever. After that, its a formal bankruptcy.

To qualify for entry to a NAP, you must:

  • have no realisable assets (realisable assets exclude cash up to $1,000, a motor vehicle up to $5,000, tools of trade, and personal and household effects) 

  • not previously been admitted to the no asset procedure 

  • not previously have been adjudicated bankrupt 

  • have total debts (excluding student loan) not less than $1,000 and not more than $40,000 

  • complete a means test showing you have no means of repaying any amount towards your debts.

Part of the reason the 'No Asset Procedure' was brought in was to create a loss-penalty for creditors who offered credit to people who they knew could probably never pay it back.