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Ford last won the day on September 11

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About Ford

  1. Credit Card Debt - The best way to pay it off?

    As I understand it, banks and credit card companies onsell either the debt or the risk to other investors. (it gets bundled together to form new investments) Investments have certain "grades" or rartings, depending on the liklihood of default. The lower the credit score the higher the chance a borrower may default on their loan. When the stock market crashed 10 years ago, (to cut a long story short) it was found that loans had been given to people who could not afford them, they had very poor credit histories and very low credit scores. The lower your credit score the higher the risk of default. When I was well into my debt four years ago, I had a credit score of 660. In two years that score has been reduced by half due to defaults being listed on it and due to manipulation of my credit report by Veda. My credit report is now about 25% accurate. And as a bankrupt, Veda (Equifax) do not give me a credit score. There is no law in NZ that prevents any creditor or debt collector from listing false information on your credit report. By that I mean if you discover wrongful information listed against you, its up to you to provide proof that the content is wrong. The credit reporter is under no legal obligation to change the information. Thats where the messy part of agency law comes into the mix. The Privacy Act only really works if you the debtor can prove some harm has come to you for wrongful information being listed against you. A bank manager told me that the purpose of a credit report is to show any defaults. Some banks may also have score thresholds in that if you are below a certain score you may not even be able to be a customer of the bank. SBS bank will not accept customers if there are defaults on a persons credit report. I have that in writing. Kiwibank seem to be able to open accounts without any listing going on a credit report. When I opened an account with them I asked them not to put an entry on my credit report (they know I'm bankrupt). And I am pleased to report they haven't. I of course had to sign the new documentation which includes a privacy waiver and gives the bank the right to pass my information to a credit reporter (this is the case with all banks). Credit reporting is actually a form of control. The accounting software company Xero also partners with Veda (Equifax). As do banks and many other corporations. Our personal data and credit histories are valuable to others and we are the mugs that keep handing information to them. The second page of a Veda credit report actually says "your credit history may be one of your most valuable assets..........." Thats a load of crap. Most people don't know they even have a credit report until a lender refuses them money. Everything is about the money. That's all anyone ever wants. If your not passing over your cash through some product or service, then they get you with your personal data, that can be collected and sold for profit. Think also loyalty cards, flybys. And how strange that Countdown is now offering insurance products and have their own pharmacy. Those industries are internationally extremely profitable for investors. Credit reporting is all a part of that same financial system. Its in existance because we are gullible and keep supporting it. You'll never hear any politian make an election promise of ditching credit reporting. But they should. I did not vote in this election, nor will I again until the goverment changes the laws around banking and debt. Let me know If anyone would like to see a copy of my credit report. I don't mind sharing it. Ford
  2. Change our bankruptcy laws

    Hi, It seems it does hold some interest. I have been contacted today by a writer for a community newspaper, who wants to do a story. I don't know which paper and nothing is confirmed yet until we meet up in a few days, but its a promising start. Thanks for the names. I'll make a note of those. There is still much I can research, but I have already hit a couple of walls, and that is where contractural arrangements with debt collectors are entered into by the banks and government with debt collectors, contracts that we the public are not allowed access to. But that is where the answers lie, and I believe they may also lie with the Government's debt management office. Who ever investigates are going to have to have tremendous courage to unveil those secrets. Ford
  3. Change our bankruptcy laws

    Hi, thank you for your questions. I have noted it. The short answer is no I haven’t yet approached anyone. But that is not to say there won’t come a time when it will be right for an investigative reporter to look into our bankruptcy laws. I would like to have an article printed first to see how people respond to the issues that I will bring to the table. I still have much research to complete. I would like there to be a proper formal government enquiry, so our laws can be changed. Bankruptcy is a very taboo subject, people don’t like talking about it. It should be discussed of course because substantial public money goes into the very hidden bankruptcy regime. So not just any reporter would be suitable. For all the issues I have uncovered, and for my part in accepting debt offerings from the bank, and then being made bankrupt, I have been lucky to have people treat me with kindness. For them and the decent people of our country they deserve an investigation by someone who has integrity and who would not bias or manipulate the findings.
  4. Change our bankruptcy laws

    September 2017 Hi, CONTINUING THE JOURNEY. I went to the meeting of the Greens and asked my question about debt and poverty. Because their focus is towards low income and beneficiaries who are in poverty, debt is only in reference to WINZ debt. They mentioned one of the government child services I could enquire as to statistical data that they may or may not have. I might look into that later. Otherwise it appears that there will not be a lot of statisical data on how debt contibutes to poverty. I had already contacted the coronors office and they also do not keep stats on people who commit suicide because of debt. The labour party also said that they don't have policies on the level of detail I require. I have prepared a draft viewpoint for publishing in the Canterbury Today magazine. Don't know if they will accept it, because not just anyone can submit articles. I had a meeting with a regular contributor to the the View Point and got some feedback on my draft. After several months I finally received a letter from the Guardian Trust about Kiwisaver. And that was only because they first had ANZ contact me, which was a complete waste of time. Under the current laws there is no way to get out of Kiwisaver unless I emigrate to another country permanently or take it out at retirement. So there stays the government contribution with ANZ continuing to take their fees. My company has now been struck off because I am bankrupt. There was no point in me spending the money to take the Companies Office to court to retain the company because only solicitors can represent a company in the High Court. It would have cost thousands to only be told by the Judge that a bankrupt cannot be a director. I have received an application from WINZ for the accomodation suppliment. Before I was bankrupted I hadn't needed to apply for any benefits. New debt. Received a timecost report from the Official Assignee and wow, 5 months into the bankruptcy and the new debt against me which started the day I became bankrupt is now more than $11,000! At the same rates, I estimate that by the end of the bankruptcy the OA would have clocked up around $60,000 in new debt. That is more than the entire creditor debt lodged in the bankruptcy against me. Case law I was reading showed another bankrupt had nearly $200,000 in new debt against them for bankruptcy administration over three years. Wow. When I meet with the MPs I will ask about that because there are nearly 2000 bankruptcies in NZ every year. The OA takes their fee first before any creditors, and if there is not enough to pay their costs then the tax payer pays it. Public money is used if there is no money that can be retrieved from a bankrupts estate. They have now closed off the bankruptcy administration. To the bankrupt, that means nothing. Here is part of the estate report "........ability to pay contributions will be reassessed if her financial circumstances improve during the course of her bankruptcy..............." Remember people the OA has access to your bank accounts. All bankruptcy means is that creditors cannot themselves collect on the debt from the debtor. They have to put a claim in the bankruptcy estate. But the debt still exists. Unless a creditor actually writes to you and tells you it has been written off. I am still paying original creditors outside of the bankruptcy regime, and I receive student loan statements from the IRD. I spoke to two IRD staff who told me that student loan debt actually "gets capitalised and put on to the new IRD number." "Oh really" I asked. I'm waiting for that to be confirmed in writing but they have told me that mine will be written off. They also get a copy of the estate report that will show I do not have any assets. In the meantime I am paying them also and the balance is reducing. It will be interesting to see if they do write off the student loan now that the bankruptcy admin is closed by the OA. Next mission - writing to the CEO of NZTA to see if they will stop the debt collector they used from holding any profile against me now that I am bankrupt. According to the debt collector themselves, they say they must retain records for auditing purposes. I asked them who audits them, given they are not regulated by any government. They chose not to respond. I'll update again in Oct. If you think of anything about our laws that you would like changed in terms of debt collection and bankruptcy, please share it with us. PS I managed to get myself on the mailing list for the NZ Debt Management office of the government treasury. They have put out the next bond tender schedule if anyone is interested. Ford
  5. Hi I posted earlier about kiwisaver and bankruptcy I still have not had any response from the Guardian Trust. It may be that they don't respond to kiwisaver issues from individual members of the public. I have however had another response from the OA. "If an undischarged bankrupt’s kiwisaver funds remain in their Kiwisaver during the bankruptcy term they are protected from the Official Assignee and are not an asset in bankruptcy. The Official Assignee will not make claim on Kiwisaver funds once you (specific to me) are discharged from bankruptcy or turn 65. If during the term of a bankruptcy an undischarged bankrupt makes an application to withdraw their Kiwisaver under hardship and the application is accepted by the fund provider, on release the Official Assignee could make claim to funds as a bankruptcy asset." So what that means is as long as you don't put significant deposits into kiwisaver or withdraw it under hardship while you are bankrupt then the OA probably won't touch it. Unless they deem you to have purposefully put money in there to divert it from creditors, they can take it. Remember they can look back five years. My advice - speaking as a bankrupt, if you wish to continue with Kiwisaver while bankrupt, don't make any withdrawals under hardship while you are an undischarged bankrupt. Stick to making regular contributions. Be consistant with amounts and deposits into your bank account in general. Anything irregular could be deemed an avoidance to pay creditors. I asked if the OA can disclaim the Kiwisaver but they can't because its not actually deemed an asset in and of itself, however the money withdrawn under hardship is an asset that rests with the OA. If you want the OA to disclaim any assets, so you can keep them you have to apply to the court. Its also worth noting that whatever assets the OA claims over the entire 3 years of bankruptcy, you never get those assets back. So for the time you are undischarged don't accumulate any substantial cash, or anything that can be called an asset. Also its worth knowing (as mentioned in my previous post) that the kiwisaver provider itself does not need to provide the OA with the kiwisaver transactions. The provider itself can actually make a determination as to whether you have been putting money into kiwisaver in lump sums or in amounts that are disproporiately large in relation to the Employer contribution. If it deems you to have been, then it will forward the transactions to the OA. Kiwisaver funds are also assets for the OA if the bankrupt dies whilst undischarged. So there are permitted withdrawals that the OA can take from Kiwisaver. My next mission - student loan debt. The supervisor of the IRD tells me that student loan debt is not written off in a bankruptcy. Instead it is capitalised and transferred to the bankrupts new IRD number! And the Tax Administration Act no longer applies because I am bankrupt.
  6. I worked out a retirement budget on a spreadsheet I am 50. I worked out I will likely retire at 65 then I assumed I would live for another 10 years after retirement, so I need to earn 10 years income in the time I have left to work, which is 15 years. I worked out my basic living costs per month then x12 to work out how much living is for the year. I guessed I would need about 5 cars for the rest of my life (now until 75years I buy secondhand). Because I do my budget for a year I don't factor in vehicle replacement, but I probably should. But for the retirement budget I just added the price of five cars to the figure. I then worked out how much I needed to live on for 10yrs which for me is around $250,000 and which I would need to earn over the remaining working years of 15 That gave me an annual income and I worked that back to a rough weekly figure of $300 net per week I need to generate in cash over and above my current income I'm earning to support my retirement. I have 25yrs to go until I get to 75yrs (end of life) Approx $600,000 total income it will cost to support my current lifestyle to the age of 75yrs I did not factor in any pension.
  7. Hi I was reading a post that suggested reading books on retirement. I am fifty and bankrupt. I don't have any savings, even if I did the official assignee would have taken the money, including any retirement money. I did post in a previous post part of a letter than I have been sent from the OA advising that for the next three years, any rights to money, assets, including superannuation are permanently extinguished and I never get them back. Three years will be a huge permanent loss of potential income. I won't be able to hold any savings or enter into a retirement scheme while the three years is in place. I live alone and I've signed up for the community services card. I am querying them about kiwisaver, but it does say on the insolvency website that they can take kiwisaver money. The OA has said verbally that they are only interested in kiwisaver if they decide that the money has been put there to avoid creditors. They have to apply to the courts to get it. But I don't trust them. So much of what I have been told about bankruptcy by them is not actually true. The Official Assignee don't directly lie, but they have deceived me substantially and I've lost trust in the system and because of how the bankruptcy initially came about as well. Can anyone recommend any books about retiring when you are bankrupt. Because I cannot hold any savings of substance, as I am still self employed I am putting extra money into some short courses in my field of work. CCH (Wolters Kluwer) do some affordable short webinars for business professionals. The government does not yet list IP as a potential asset it can claim. My six month review is coming up, and while they don't say it in their letter, there is nothing stopping them from deeming me able to pay money into the bankruptcy if they can see I'm using it for education, because education is not an expense that is deemed a necessary basic living cost. I will try and become a consultant after the bankruptcy but I expect my options will be limited and I am learning disabled as well. If anyone could recommend some books or advice on living in retirement while bankrupt would be great. I don't intend to stop working, but there will come a point in time when I will be too old to be of value to others. Ford
  8. Here is an article by the NZ Herald http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11919732 Equifax has been hacked and stolen private data of millions of people. This has happened in US. Supposedly it doesn't affect other countries. Credit reporting is unregulated in NZ. Because Equifax have taken over from Veda, how can the public be rest assured that our data is safe. I have a letter from the privacy commissioner advising that because I am bankrupt, other rules of law overwrite my right to privacy, which means of course I don't have any privacy rights. Ford
  9. Hi I have just received a letter from the Official Assignee. I'm publishing it because there is important information about assets bankrupts hold at the time they are bankrupt and what they aquire while they are are bankrupt Here is some of the contents. "Assets - please be aware that any assets (property or money) that you had at the date of your bankruptcy (eg. Superannuation funds, inheritances, winnings or refunds etc) are now the property of the Official Assignee and your rights to these are permanently extinguished. Similarly, any property or the money that you acquire between the date of your bankruptcy and the date of your discharge from bankruptcy automatically becomes the property of the Official Assignee. This includes any gifts, income tax refunds, some compensation payments, rights to claim money from others and inheritances. Once you are discharged from your banrkuptcy these assets remain the property of the Official Assignee, they do not return to your control. This means that you will never be able to access any of these funds in the future. If you acquire any such property during your bankruptcy you must hold it and notify us about it immediately." I will try and get a bit more detail about that with regards to Kiwisaver, because they do not specifically mention Kiwisaver. In their letter to my kiwisaver provider they advised that they don't hold any interest in it (that statement contradicts their letter) and that they can only take the money when they deem that its being used to avoid paying creditors. On a bankruptcy estate report kiwisaver is listed in a different asset section that superannuation. As a bankrupt - I suggest don't put money into any asset scheme whatsoever while you are bankrupt. Its also worth considering if you may have money coming to you via a deceased estate (perhaps your elderly parents may die soon), or other such inheritance, that you talk to people leaving you the money (before they die)and ask that they don't include you in their Will whatsover, but they could leave your share of the estate with another trusted beneficiary who could as a good will gesture pay you later. One of the issues with bankruptcy is that you literally have no legal or privacy rights. NZ law does not allow bankrupts any protection whatsoever. You also don't have any rights in court.
  10. Kiwisaver to clear debt

    Update on Kiwisaver I still have not heard from the guardian trust. I have let the Trustee Corporations know. I will wait a couple of weeks and try writing again. My kiwisaver is parked on a five year holiday. ANZ still take out their fee each month, even though nothing is going into it. I was also forwarded a letter that the Official Assignee had written to ANZ. In their letter they state that provisions of the insolvency act allow permittable withdrawals by the OA for creditor repayments. Here is a sentence of the OA's letter to the bank:- "..........I need to establish whether any payments have been made into the (KS) Account which should be recovered under the Insolvency Act for the benefit of creditors.........." they will have reason to take kiwisaver if you have made large deposits into it or if you contributions are a lot larger that what your employer is contributing. they will look back over that last five years. The OA wil also ask the bank for transactions going back at least two years, and as far back as five years. If you are actually insolvent or looking like you are heading that way, you need to prepare now. Ask yourselves now, today, could the official assignee (should you find yourself with a formal insolvency procedure against you at some point in the future) deem withdrawals from your bank as being an attempt to avoid repaying creditors, over the last five years. They will also look to see what has been gifted to you, lottery winnings and monies left to you in someones will. Any trusts you have etc, etc. The OA has to prove you intended to avoid creditors, and your only defence under the Insolvency Act is that you did not have that intention. Which you will have to prove. Unless you set out to deliberately defraud creditors, there should not be any reason why anyone needs to file for a formal insolvency procedure. There is nothing at law that prevents any bank or creditor for entering into a formal arrangement with a debtor under hardship. GEM Visa do that. They actually have four hardship options. I entered into a hardship arrangement with them. In my case the banks would not do so, with BNZ actually returning my cheques and opted instead to use three lawyers and a dodgy debt collector to try and recover a debt of just $6,200.00. They called a disputes tribunal hearing and there were two high court cases. What's horrible about that (and is one reason why I'm trying to have the law changed) is that the tax payer actually pays the bankruptcy administration costs and court costs, if the bankrupt has no assets. There never will be in my case. And the banks knew that, but they continued on regardless. And in three months the OA has clocked up more than $7,500 in new debt against me. Everytime someone makes an equiry against my estate, the debt increases further. The fact that I'm in financial hardship is never a consideration. Tax payer money gets used and wasted to pay for unnecessary bankruptcy administration costs. In three years that can accumulate to hundreds of thousands of dollars for administering just one bankruptcy and we have thousands of bankruptcies and insolvency procedures every year in NZ every year. That is appalling when that money could be be better spent fixing the poverty, suicide and crime rates that seem to be never ending in this country.
  11. Change our bankruptcy laws

    Hi, INTRO I thought I would start an online journal about my journey to change our bankruptcy laws, and to end collective corporate bullying of people who are in financial hardship, poverty or who are bankrupt like me. As a bankrupt myself it was truely a shock to learn the truth about what it really means to be in debt in NZ. So I've set upon a mission to change our laws. I believe if I knew the real truth about debt in NZ I would have long ago carved out a more prosporous life for myself. I hope readers, you get some value out of my journey to change our laws. I hope its not too late for you to turn away from debt and towards a better future. The world of debt in NZ is very complex. Its like a giant puzzle made up of many pieces of all shapes and sizes. This journal will be an attempt to put all the pieces together. In the end, we will all see the real picture. It was a shock to discover that the debt collection industry in NZ is also corrupt. The place to fix that is to change our laws. There is a tremendous incentive for lending agencies and government to keep people in debt. They work hand in hand through the unregulated debt collection industries, governments and corporations, to move our money out to the international stock markets. THE ULTIMATE GOAL 1. To change our laws in order to end collective corporate bullying and discrimination against people who are in financial hardship, poverty and those who have formal insolvency procedures against them. THE JOURNEY The journey for me, began 4 years ago when I decided to do something about the debt that I was in. I am bankrupt today because I was unsuccessful in that mission. Thousands are bankrupt in NZ every year. Most are due to creditors bankrupting them through the High Courts like I was. But this journey is not about my story. Its about the steps I am taking to have our laws changed in NZ, so we can take charge of our own lives and live the way we chose without the burden of debt ruining our lives. Being in financial hardship and bankrupt, a lot of our legal and privacy rights are taken away from us. Up to this point in time I have researched, spoken to MP's, community groups and individuals in an effort to understand just how are rights are being violated by the debt collection industry and why we have such very harsh cruel insolvency laws that stand in contrast to our governments values and to even our written laws. Just a few of the pieces of the puzzle starting to fit together. To change our laws will be done just small steps at a time. CONTINUING THE JOURNEY As I've gathered evidence, I'm identifying first what laws that are actually harming people who are bankrupt. That is its easier to see that from my current position. Then I'll create a sort of demographic of different areas and what laws need to be changed. When I became bankrupt, the first thing I was made aware of, was that people in NZ don't actually have a right to hold a bank account in NZ. Banks in NZ do write to their customers and tell them to close their accounts when they become bankrupt. Thankfully most have allowed me to retain my accounts. There are also banks in NZ who will not accept new customers if they have defaults of any sort on their credit reports. As NZ Citizens we don't have an inherent right to hold a bank account in NZ, its up to the individual banks. The law to change is for bankrupts to be able to keep their transactional accounts open with the bank when they become bankrupt. The other law to change is for people who are self employed to be able to continue working without the threat of imprisonment by the official assignee. Because I had no other source of income, I was forced to keep working for 5 weeks with that horrendous threat hanging over me. Eventually I did obtain consent to keep working in the same position I had been in for five years, so I could pay basic living costs. No person should have to be expected to live like that. This week there is a meeting with the Green Party. They will be talking about poverty. I'm going to that meeting to see if I can find a link between debt and poverty. I'll post into this journal every couple of weeks or so. If anyone has any suggestions that will help this campaign, please put your suggestions forward. Ford
  12. In NZ the goverment publishes for life NAPs and bankruptcies in the online NZ Gazette. Too bad if you don't want people to know your past wrongs. Your credit report will show insolvency data for seven years. New bank accounts you open are likely to end up hitting your credit report, especially if you signup online. Better to go into the branch. There needs to be more focus on helping people to create cashflow and build wealth, before they have to file for a formal insolvency procedure. Saving and reducing expenses has been bashed to death. I do have separate accounts which I call household, vehicle, emergency etc. When I pay my creditors online, I put the word hardship in the reference field that shows on my bank statement. So if I want to take on new debt and I'm asked for my bank statements, creditors will run a mile when the see the word hardship. Its not the debt that is the issue, for me being bankrupt its the way that the government, banks and other corporations treat us. In the three months I have been bankrupted for, the official assignee has created new debt against me to the tune of $7500. And the companies office are going to strike off my company, because the law doesn't allow bankrupts to be directors. Nobody gets into debt on their own. The banks do lend to people when they are insolvent. Forget debt consolidation as well, or any roll over lending. The contracts don't count when the debt goes to a debt collector. Only the original contract matters, all other lending (with the same bank) is just a continuation of the existing lending. Also if you have company debt and you never signed a personal guarantee, it can still be put forward into the bankrupts estate. Ford
  13. We have customers come to us from a tax agent and sometimes we have to undo what a tax agent has done wrong. They can make mistakes because they don't have the same level of skill as a chartered accountant. People end up either under paying or overpaying their tax. The other issue is the customer doesn't always declare all of their income. A tax agent may not bother to ask the customer questions about their income. Tax agents are good for people with one income source from a job. Sometimes people don't realise that they do have other sources of income from, say passive income or interest that they forget to declare.
  14. Advice sought, next steps?

    I signed up for a free demo account with CMC markets. Learned alot about how the stock markets work. I do now have a live account and I listen to their online webinars. That sparked a great interest and today I read books on investment banking, asset allocation, risk and all sorts of financial products. I read financial anayst reports and financials for publically traded companies. Today I go, wow there is so much that we just don't know about. Our lack of financial knowledge is actually being exploited. I do read RK's books. My favourite is the cashflow quadrant. I also read Michael Gerber's Emyth series of books. Once you delve into the real world, you'll wonder what on earth you have been learning all these years, until now. You're focus will shift from a poverty mindset, to an educated wealthy mindset as you continue your journey through life. Ford
  15. Worth getting an accountant?

    I am not an accountant but I do work in the chartered accounting industry and have been there long enough to know that a lot of people get the tax wrong when it comes to investing in property, if they do it themselves. They try and reduce their tax by depreciating property and items that are not meant to be depreciated. They don't know what tax forms they are supposed to use. They set up the wrong legal structure. Its not one size fits all. There is a lot to consider if you want to set up a legal structure like a company or a partnership, or a trust to hold the property. How that is set up will determine which tax structure you fall under. You need to consider things like insurance, and other risk factors. Yes you can claim back rental expenses. Its just like running a business. Accountants are different. Chartered Accountants are different from tax agents. You can use either to help with your rental property. Some will specialise in diferent areas. Find an account who specialises in rental properties. Ask around and see who people are using. At least go before you get started. Ask what risks you need to consider. All the time we have new customers ringing us wanting advice because they have gotten themselves in the cr*p. Because they didn't get any advice in the beginning. For a lot of people that's when they start educating themselves about what they should have known before they got started. But its often too late then. Now they've gotten into a legal bind. If things go wrong, and you owe money to creditors and the IRD, they are going to be taking you to court, not your accountant. Get educated. Accountants will sometimes give you a first appointment for free. Make use of that and go in with a bunch of questions. It makes a difference also what is the purpose of having a rental property. That can be a factor in deciding the best legal structure. Make sure you create a rental budget as well. You might like to share your journey. Ford